Buildings Insurance?

Dannylufc

Hi all

I am hoping someone is able to clarify a tricky situation that I've been unable to get a definitive response from my solicitors with.

I have sold my house and have set a completion date of Monday 2nd October. My buildings insurance expires on Friday 29th September.

Do I need to get buildings insurance for the 2 days before the property's ownerships is transferred to my buyers?

I am moving in with family as I haven't found a suitable house to buy as yet so can't just take out a policy and transfer onto my new house.

What are the ramifications if I don't take out buildings insurance?

Any help or advice would be gratefully received.

Many thanks

Danny

Surrey_EA

Do you have a mortgage currently secured against the property?
It is likely that the terms of your mortgage dictate that you must have appropriate buildings insurance in place whilst you remain the owner.

If a tree fell on the house on 30th September, and your buyer failed to complete on 2nd October, you might find yourself in a spot of bother! Highly improbable, but not completely impossible.

westv

When do you exchange? Your buyer needs their own insurance from the date of exchange.

Surrey_EA

westv wrote: »

Your buyer needs their own insurance from the date of exchange.

That's true. But what happens in the event that the buyer fails to complete for one reason or another? It's rare, but can happen.

davidmcn

You carry on insuring until completion has actually happened. You then cancel your insurance, and get most of your premium back (or possibly all of it if within a cooling-off period).

Slinky

Just before the old one expires take out new insurance which comes with a 14 day cooling off period if you don't claim. Pay with a debit card as you won't get credit card charges back.

00ec25

in the period between exchange and completion both the buyer and the seller are wise to have insurance in place in case anything happens and one party cannot deliver on the contract because the building is now a wreck

whether you want to take a risk for those 2 days, and whether anyone would find out if nothing happens are different matters. If nothing happens but someone finds out what can they do about it, nothing.