Confused re Exchange and Buildings Insurance

juleslula

Hiya,

Throughout the buying process, we have been told by Mortgage advisor and Solicitor that as soon as we exchanged contracts, we would have to have buildings insurance in place.

I just called the AA to set up the insurance, as we exchanged today :j . They told me that they have just had a memo round that says we only have to have buildings ins from COMPLETION and not EXCHANGE. Arrggggg. Which is it?? She wouldn't let me start it today!!!!!!!

Have things changed recently, or do I indeed need it from today?

Also, if I set up insurance for today at that address, wont all our documents get sent to new address? We aren't completing/moving in for another 3 weeks!!

Thanks everyone for your advice. :beer:

Badger_Lady

Hmmm, confusing... even though exchange means you are committed to the property, you still don't actually own it, so how can you claim against insurance pre-completion?

I would never expect to take out insurance at your stage. Does the current owner not have insurance?

I'd suggest that you shop around and ask some other insurers, but think carefully before buying because you don't want to end up spending well over the odds simply because no general insurer will put you on risk immediately...

Unless you find a willing (and cheap) insurer, I'd have another word with your Solicitor.

Anyone know more about this?

Doozergirl

It is normal to take out insurance at exchange. A lot of mortgage companies request sight of the buildings insurance document to release the money. At exchange you already have an insurable interest in the property. As it's usually only a short period of time, then why not?

By the way, OP why are you phoning the AA?! Have you read Martin's articles on insurance? You should be using comparison sites and then checking the most competitive firms on quidco to see if you can get yourself a nice bit of cashback!

Doozergirl

Thank the AA for saving you some money OP.

If you do one useful thing today, read this!
http://www.moneysavingexpert.com/insurance/home-insurance

juleslula

Thanks for the advice!! I got the AA quote through the comparison websites, as they came out best! Have to admit tho, am not signed up to Quidco!