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Building Insurance before purchase
ccfc1972
Posts: 166 Forumite
We have had documents through to sign for completion. Contract, Title Plan, TR1 etc.
The solicitor also says that they need a copy of the Building Insurance Schedule posting through. Obviously we haven't completed the insurance yet as we haven't exchanged...is it normal to take the insurance out before completion on a property you do not yet own? How does this work? Confused.
The solicitor also says that they need a copy of the Building Insurance Schedule posting through. Obviously we haven't completed the insurance yet as we haven't exchanged...is it normal to take the insurance out before completion on a property you do not yet own? How does this work? Confused.
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Yes, it's absolutely normal you insure from exchange of contracts.0
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Yes. As far as I'm aware if the house burns down between exchange and completion it still becomes yours on completion so you need to be protected. My solicitor asked me to send my insurance documents showing it was in place for exchange (I presume this came from the lender for whom she was also acting for). It started on the original proposed exchange date but exchange was delayed 4 days. Wasn't an issue. If the sale fell through I would have just cancelled the policy. Although because I took it out within 7 days of the policy starting it was way more expensive than if I had got it 14 days ahead.
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We’re not due to complete until around the 15th Jan though...we don’t even have a set completion date yet.0
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Under the Fifth (IIRC) Edition of the Standard Conditions of Sale the purchaser accepts the risk from exchange and should insure the property. Some insurers (not via screen-scrapers) will take an application with a TBA start date and will issue details of cover to solicitor ahead of the risk.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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When you're (just about to) exchange, you start your insurance. I presume you're expecting a gap between exchange and completion?0
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Yes, should be a week or possibly 2 weeks. So we wait until we're about to exchange before we "push the button" on the insurance?davidmcn said:When you're (just about to) exchange, you start your insurance. I presume you're expecting a gap between exchange and completion?
Just wondering why the solicitor is asking for it now, unless it's just an exhaustive list of all the things they need before we can complete.0 -
you can get a quote online using the comparison websites to get an idea of the cost, then you can accept the quote on exchange date as buildings insurance should start from exchange date.ccfc1972 said:
Yes, should be a week or possibly 2 weeks. So we wait until we're about to exchange before we "push the button" on the insurance?davidmcn said:When you're (just about to) exchange, you start your insurance. I presume you're expecting a gap between exchange and completion?
Just wondering why the solicitor is asking for it now, unless it's just an exhaustive list of all the things they need before we can complete.0 -
Many thanks0
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Still some confusion as to when e are going to exchange, hopefully be next week, looking to complete on the 15th Jan.
If I take out insurance now, with a start date of the 15th Jan, what happens if we do not then complete on that day?0
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