Buying a house, unclear about home insurance

cherryduck

Hi all,


I have my mortgage offer through, I understand I need home insurance as a condition of the lender. I'm a little confused though. How can I insure a property I don't currently own? What happens if the sale falls through? Also, when trying to look at price comparison sites they ask a lot of questions I don't have the answers to, and the seller is unable to answer, so how do I answer those questions?



Additionally, should I sort insurance now, or wait until the building survey report comes back? As it seems a waste to buy insurance when we're not fully committed to buying the house, and if any show stoppers come up then I will obviously not want to continue with the purchase.

bigisi

cherryduck wrote: »

Hi all,


I have my mortgage offer through, I understand I need home insurance as a condition of the lender. I'm a little confused though. How can I insure a property I don't currently own? What happens if the sale falls through? Also, when trying to look at price comparison sites they ask a lot of questions I don't have the answers to, and the seller is unable to answer, so how do I answer those questions?



Additionally, should I sort insurance now, or wait until the building survey report comes back? As it seems a waste to buy insurance when we're not fully committed to buying the house, and if any show stoppers come up then I will obviously not want to continue with the purchase.

You are only responsible for insuring a property from exchange of contracts as that is when you are legally bound to complete the purchase.

You need to find out the answers to the questions they want to know in advance one way or another, don't make things up as should the worst happen and you need to claim you don't want the insurer denying any claim due to your inaccuracy.

Hasbeen

cherryduck wrote: »

Hi all,


I have my mortgage offer through, I understand I need home insurance as a condition of the lender. I'm a little confused though. How can I insure a property I don't currently own? What happens if the sale falls through? Also, when trying to look at price comparison sites they ask a lot of questions I don't have the answers to, and the seller is unable to answer, so how do I answer those questions?



Additionally, should I sort insurance now, or wait until the building survey report comes back? As it seems a waste to buy insurance when we're not fully committed to buying the house, and if any show stoppers come up then I will obviously not want to continue with the purchase.

If you buy the house. You insure it from move in date.

3card

Hasbeen wrote: »

If you buy the house. You insure it from move in date.

No no no.......the house becomes your risk from the exchange so the best way is to inspect it as close to the exchange date to ensure all it correct and when you are happy then arrange insurance for the exchange date and happily exchange

Out,_Vile_Jelly

When I bought, I downloaded Martin's guide to mortgages and buying from this site, it was really helpful with stuff like this.


Start getting some quotes so you don't have to do it all on Exchange Day.

AdrianC

cherryduck wrote: »

Also, when trying to look at price comparison sites they ask a lot of questions I don't have the answers to, and the seller is unable to answer, so how do I answer those questions?

What questions are you struggling with?

cherryduck

AdrianC wrote: »

What questions are you struggling with?

Rebuild value - I was told this would be on the report from our mortage lender but it's not.


What types of locks the property uses on doors and windows.


If the alarm is maintained every year by a NSI or SSAIB approved company.


If the alarm is monitored.


If there is a local neighbourhood watch.


I asked the seller these questions and got variations on the answer "not sure" or "I don't know".

Out,_Vile_Jelly

cherryduck wrote: »

Rebuild value - I was told this would be on the report from our mortage lender but it's not.


What types of locks the property uses on doors and windows.


If the alarm is maintained every year by a NSI or SSAIB approved company.


If the alarm is monitored.


If there is a local neighbourhood watch.


I asked the seller these questions and got variations on the answer "not sure" or "I don't know".

Just answer that there's no alarm or neighbourhood watch.



You could ring the estate agent, who can take a look at their bunch of keys for the property and tell you if it's a chubb or mortice style lock.

AdrianC

cherryduck wrote: »

Rebuild value - I was told this would be on the report from our mortage lender but it's not.

https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/home-insurance/buildings-insurance/calculating-your-rebuild-cost/
Or just go for one that insures "up to" £500k/1m/whatever.

What types of locks the property uses on doors and windows.

Another viewing, and look. How many viewings have you had so far? As below, though, will it actually matter? You can, of course, upgrade once you're in.

If the alarm is maintained every year by a NSI or SSAIB approved company.
If the alarm is monitored.

That's up to you once you move in. What the previous occupant did is irrelevant. But unless you live in downtown Damascus, I doubt the premium will vary much if you say "No".

If there is a local neighbourhood watch.

Google.