House Insurance with a twist!

aes427

Hello,

I'm looking for some advice...My parents transferred ownership of their house to myself and my sibling. They will remain living there. Question is; what type of Buildings insurance do we/they need? Are we (my sibling and I) technically landlords and they are tenants? If so, they just require to have contents insurance and we do the building insurance?

We dont want to be under/not insured!!

Any help is appreciated.

Thanks

Boggles190

Hi,
You're correct in that you will insure the buildings and your parents the contents.

In terms of them being tenants or mot, check the insurers definition of family. I used to deal with this scenario quite often and as we had a fairly broad definition of family we didn't need to sell a policy on the basis of it being a tenanted property, just occupied by insured and family.

Insurance on a tenanted property is usually more expensive.

Lorian

Insurance aside

https://www.saga.co.uk/magazine/money/personal-finance/giving/what-you-need-to-know-about-signing-property-over-to-your-children

Worth reading the section on gifts with reservations.