Building Insurance - Long gap between exchange and completion

Old_Lifer

When I took my CII exams we were taught that buildings cover should be in force from the date of exchange,  since  at that point the purchaser has to go ahead   with the purchase,   even if the property is destroyed  before completion.    The purchaser has an insurable interest in the property  from the date of exchange.

This is what Thrugelmir is saying in his post.

davidmcn

Old_Lifer said:

When I took my CII exams we were taught that buildings cover should be in force from the date of exchange,  since  at that point the purchaser has to go ahead   with the purchase,   even if the property is destroyed  before completion.    The purchaser has an insurable interest in the property  from the date of exchange.

This is what Thrugelmir is saying in his post.

Yes, that's the normal contractual position in England & Wales. But there's no particular reason why it has to be that way, and you can agree something else if the parties agree.

Old_Lifer

As others have said,  the mortgage company  will only wish to ensure that you have insurance  in force  on the date that the mortgage  starts (at completion)  as that is when their  insurable interest begins.   The requirement to insure the property is a standard mortgage condition designed to ensure that insurance is in force throughout the period of the mortgage.

You could,  as  davidmcn suggests,  seek  to shift the risk from exchange to completion   onto the seller.