Exchange tomorrow, insurance and utilities?

dennishopper

This may seem like a silly question(s), so far along the line, however I exchange and enter a property I’ve purchased tomorrow, and have realised I have never dealt with utilities or home insurance before, it having always been taken care of for me be it renting or living with parents etc. Is there a “for beginners” guide re. switching utilities over from the previous owner to myself, and how to get the best value?

The previous owner doesn’t speak good English and my solicitor has simply said all you need tomorrow is buildings insurance purchased on the day (not before) and you will figure anything else out in time. So it just a case I’d jumping on a comparison site for buildings insurance tomorrow?

Unfourt. I also don’t really have anyone in my life who can help me with these types of things. So appreciate they are maybe silly or obvious questions,

davidmcn

dennishopper wrote: »

Is there a “for beginners” guide re. switching utilities over from the previous owner to myself, and how to get the best value?

Yes, on this website - go to "Utilities" at the top of the page. Similarly for insurance. You can do the comparisons now, you just don't need to actually start insurance until your purchase has settled (assuming you're still buying in Scotland - it's slightly different in England).

AdrianC

dennishopper wrote: »

I exchange and enter a property I’ve purchased tomorrow

Do you mean you're exchanging and completing tomorrow?

Exchange is when you're legally bound to purchase. Insure the buildings from that.
Completion is when you actually buy it - and that's when you'll get access and when you need to have the utilities sorted.

and have realised I have never dealt with utilities or home insurance before, it having always been taken care of for me be it renting or living with parents etc. Is there a “for beginners” guide re. switching utilities over from the previous owner to myself, and how to get the best value?

There's umpty-seven ways to compare who's offering what, from asking a passing Meerkat to simply going by marketing.

At completion, you take over the utility suppliers that the vendor used. They should be on the paperwork your solicitor will have provided you with. That doesn't mean you have to stay with them - you can change at any time, so no great rush.

The previous owner doesn’t speak good English and my solicitor has simply said all you need tomorrow is buildings insurance purchased on the day (not before) and you will figure anything else out in time. So it just a case I’d jumping on a comparison site for buildings insurance tomorrow?

Yes.

The one think you'll need to know is a rebuild cost. That's not the same as the purchase price - because the purchase price takes account of the value of the land. There's various ways to calculate it (and many policies simply say "Up to £X-far-bigger-than-you-need") - https://abi.bcis.co.uk/calculator/calculator.aspx is one of the main ones.

pinkteapot

Are you exchanging tomorrow, completing tomorrow, or doing both?

If you're getting a mortgage then you must have home insurance in place from the date of exchange. Specifically, you only need buildings insurance from exchange and don't need contents cover until completion, but unless exchange and completion are a long time apart it's probably not worth faffing with doing buildings now and adding contents later.

You don't switch the utilities until completion. The gas, electricity and water won't get disconnected when the current owner leaves. There will still be a supply to the property and you'll start using it. As soon as possible after completion (when you get the keys), read the meter(s) and make a note of the reading. This ensures an accurate starting reading for your accounts and that you don't have to pay for any gas/elec/water that the previous owner used.

Then, and it doesn't matter if it takes you a couple of days to get round to this, you phone the current supplier and say "I own [address] as of [completion date] and have taken over the supply." They'll take your details and ask for the opening meter reading. They'll ask if you want to go onto a fixed price plan. I always say no at this point and just ask to be placed on a standard variable tariff. That way I'm free to leave whenever I want (fixed price normally has at least a 12-month tie-in). I can then shop around different suppliers at my leisure once the chaos of moving is over.

You do have to start accounts with the current suppliers - there is no choice in that. Even if you switch immediately, you'll still be using supplies from the current supplier until the switch goes through, so you have to register with them.

Note that you only shop around for gas and electricity - your water supplier is fixed as there's one supplier for each area (in some odd areas you have two - one for water and one for sewerage - I had that in north Essex).

Also note that while I said read the meters, I've never been able to get a water meter cover off so have never read one and have lived in many houses. :rotfl: Water's cheap and the suppliers do meter readings so I haven't worried about it. Gas and elec are more important to read.

davidmcn

Despite the OP's reference to "exchange", previous threads suggest they're buying in Scotland - where there's no need to insure until ownership changes hands. Though if it's all happening on the same day anyway it's kind of academic.

G_M

dennis:
England or Scotland?


What are the exact dates (eg 'Exchange' tomorrow suggests England with Completion at a later date).


Please clarify.

scottishblondie

I'd get on organising the insurance today as it can take a bit of time to find the right one and sort it all out. You can have the provider start it from the date of entry.

In terms of utilities just take meter readings tomorrow (photo of each meter ideally) and ask the previous owner who the current suppliers are. Phone them up and open new accounts in your name with the meter readings, then jump on a comparison site to find a deal and start the switching process.

dennishopper

G_M wrote: »

dennis:
England or Scotland?


What are the exact dates (eg 'Exchange' tomorrow suggests England with Completion at a later date).


Please clarify.

Scotland! Complete tomorrow

dennishopper

Sorry, I should have said complete. Entry is tomorrow but Solicitor said not to insurance until keys received but do so immediately at that point

dennishopper

pinkteapot wrote: »

Are you exchanging tomorrow, completing tomorrow, or doing both?

If you're getting a mortgage then you must have home insurance in place from the date of exchange. Specifically, you only need buildings insurance from exchange and don't need contents cover until completion, but unless exchange and completion are a long time apart it's probably not worth faffing with doing buildings now and adding contents later.

You don't switch the utilities until completion. The gas, electricity and water won't get disconnected when the current owner leaves. There will still be a supply to the property and you'll start using it. As soon as possible after completion (when you get the keys), read the meter(s) and make a note of the reading. This ensures an accurate starting reading for your accounts and that you don't have to pay for any gas/elec/water that the previous owner used.

Then, and it doesn't matter if it takes you a couple of days to get round to this, you phone the current supplier and say "I own [address] as of [completion date] and have taken over the supply." They'll take your details and ask for the opening meter reading. They'll ask if you want to go onto a fixed price plan. I always say no at this point and just ask to be placed on a standard variable tariff. That way I'm free to leave whenever I want (fixed price normally has at least a 12-month tie-in). I can then shop around different suppliers at my leisure once the chaos of moving is over.

You do have to start accounts with the current suppliers - there is no choice in that. Even if you switch immediately, you'll still be using supplies from the current supplier until the switch goes through, so you have to register with them.

Note that you only shop around for gas and electricity - your water supplier is fixed as there's one supplier for each area (in some odd areas you have two - one for water and one for sewerage - I had that in north Essex).

Also note that while I said read the meters, I've never been able to get a water meter cover off so have never read one and have lived in many houses. :rotfl: Water's cheap and the suppliers do meter readings so I haven't worried about it. Gas and elec are more important to read.

This is all very helpful. Thank you kindly. No mortgage (small place) and move in tomorrow. There is no contents so I will just need buildings insurance from tomorrow, unless there can be good value in purchasing both at the same time

dennishopper

AdrianC wrote: »

The one think you'll need to know is a rebuild cost. That's not the same as the purchase price - because the purchase price takes account of the value of the land. There's various ways to calculate it (and many policies simply say "Up to £X-far-bigger-than-you-need") - https://abi.bcis.co.uk/calculator/calculator.aspx is one of the main ones.

Ah! It’s actually a flat in a former building that’s been split into 5.. Wouldn’t have a clue re. rebuild cost :-|