Buildings insurance during exchange?

youth_leader

Arranging buildings insurance from exchange was in the 'Guidance Notes' with my solicitor's letter.  As my dates were so close, I arranged buildings/contents to run from the exchange date. 

3card

when we last moved (almost 20 years ago lol) Our solicitor mentioned this to us but as part of his costs he automatically put insurance cover in from exchange using his 'blanket' insurance policy
I often wonder why this isnt the norm because the cost must be negligible on the overall scheme of things and one less thing to worry about

3or4magpies

I've been asked to get building and contents in place ready for exchange by my lender too. I needed to note the lender as an interested party and send proof of this to the solicitor. 

davidmcn

3or4magpies said:

I've been asked to get building and contents in place ready for exchange by my lender too.

Lenders certainly have no interest in whether or not you insure your contents, and (unlike the building) there is no need to insure them before you actually move in anyway. Though for the sake of what is probably an extra few days' premium, not much point making a distinction. 

GDB2222

davidmcn said:

3or4magpies said:

I've been asked to get building and contents in place ready for exchange by my lender too.

Lenders certainly have no interest in whether or not you insure your contents, and (unlike the building) there is no need to insure them before you actually move in anyway. Though for the sake of what is probably an extra few days' premium, not much point making a distinction. 

I wonder whether this is just the solicitors simplifying things. Rather than explaining everything fully, they just get clients to put full insurance in place from exchange. There’s less to go wrong, and less to explain. Job done!

Sotts

Contents insurance not required. But once you exchange, you legally have to purchase the property.  If it burns down the day after exchange, you still have to buy it which is why lenders insist on this from exchange.  
The legal owner is still the vendor who will have their own buildings insurance which will cover them and their lender, but not you. 

Buildings insurance tends to be more expensive when provided by your lender so shop around 

AnotherJoe

Aspiration said:

I’d be over the moon we were close to exchange and organise from that point. 

Whilst highly unlikely you’ll have a problem as most people state lenders usually require it and for an extra £25 a month it’s not worth the worry. 

Good luck moving, always an exciting time!

Like @Natbag above my insurer didn't charge any more for buildings insurance from exchange, they added it on for nothing to my existing insurance, and once in the new house I called in to swap over fully. 

FWIW my solicitor did advise me to get buildings insurance in place from exchange but it wasn't an absolute requirement because there was no mortgage though my layman understanding has always been that lenders do require it. 

MaryNB

I had to send my solicitor a copy of my insurance policy just before exchange. From what I've read Halifax requires it from exchange.

Seashell517

Ended up with a few days between exchange and completion, rather than the two weeks originally planned, so switching my current building/contents policy from the day of completion and took out a separate buildings only policy on the new place from exchange, which I'll cancel after completion. As it will be within the 14 day cooling off period, I should get the money back, but I put it on pay monthly so even if I end up paying for a month it's not that much, especially in the grand scheme of house buying.

davidmcn

Sotts said:

once you exchange, you legally have to purchase the property.  If it burns down the day after exchange, you still have to buy it which is why lenders insist on this from exchange.  

As above, lenders only need it from completion. If the place has burnt down, your lender is hardly likely to proceed with the mortgage - so you'd buy it with the insurance proceeds.