Building Insurance - Long gap between exchange and completion

Arefer

Hello everyone,

I'm looking for building insurance to cover a property between exchange and completion to comply with the mortgage conditions. However, since the expected gap is around 3 months, I cannot find a suitable insurer to cover this period. I've called a few insurers over the last few days, and here are the results:

Direct Line - 60 days
Legal and General - 90 days prior to completion, but their quote page only allows you to choose a completion date 45 days ahead
LV - 60 days
AXA - 60 days
Churchill - 30 days
Esure - cannot cover this scenario
Policy Expert - 14 days
Admiral - 30 days

Does anyone have any other suggestions that they are aware of?

Thank you.

davidmcn

Why not just provide for risk remaining with the vendor in the contract?

kingstreet

Newbuild or not?

Arefer

davidmcn said:

Why not just provide for risk remaining with the vendor in the contract?

I’ve explored that option but the mortgage offer says that I’ve to take out building insurance myself.

Arefer

kingstreet said:

Newbuild or not?

It’s not a newbuild.

Thrugelmir

Why the 3 month gap? 

davidmcn

Arefer said:

davidmcn said:

Why not just provide for risk remaining with the vendor in the contract?

I’ve explored that option but the mortgage offer says that I’ve to take out building insurance myself.

Are you sure? What exactly does it say? I wouldn't expect the lender to care about insurance between exchange and completion, because that's nothing to do with them - all they want is the property to still be there (and be insured by you) from completion.

Arefer

Thrugelmir said:

Why the 3 month gap? 

We are buying the property from a building company who obtained it from their client as part exchange for one of their new builds. Their client is currently staying in the property until their new build is ready, which will take another 3 months, and the building company wants to complete after that.

Arefer

davidmcn said:

Arefer said:

davidmcn said:

Why not just provide for risk remaining with the vendor in the contract?

I’ve explored that option but the mortgage offer says that I’ve to take out building insurance myself.

Are you sure? What exactly does it say? I wouldn't expect the lender to care about insurance between exchange and completion, because that's nothing to do with them - all they want is the property to still be there (and be insured by you) from completion.

That’s what our solicitors have advised, as the current ownership/occupier status is a bit complicated. The mortgage offer states that the ‘borrower’ must comply with the following obligation, namely that you must make sure there is suitable buildings insurance in place.

davidmcn

Arefer said:

davidmcn said:

Arefer said:

davidmcn said:

Why not just provide for risk remaining with the vendor in the contract?

I’ve explored that option but the mortgage offer says that I’ve to take out building insurance myself.

Are you sure? What exactly does it say? I wouldn't expect the lender to care about insurance between exchange and completion, because that's nothing to do with them - all they want is the property to still be there (and be insured by you) from completion.

The mortgage offer states that the ‘borrower’ must comply with the following obligation, namely that you must make sure there is suitable buildings insurance in place.

From when though? I've found that wording on the TSB's website which makes it a bit clearer:

"You must make sure there is suitable buildings insurance in place as long as you have this mortgage."

You don't "have the mortgage" until completion.

Thrugelmir

What liability is there for the lender. If the property burns down or there's significant damage after exchange with the purchaser obliged to complete even if there is no property to move into.