No building insurance

uneverknow

I'm in the process of buying a house and it looks like the vendor hasn't been insuring the property. It's a freehold house, it's been used as a 2nd home by the vendor and has no mortgage on it, so technically he's not obliged to have a buildings insurance. However, I thought it was unusual not to have it. I don't have much experience with property transactions, so I wanted to ask more experienced people on here if you'd consider it a cause for concern?

My solicitor asked the vendor if he ever had any problems insuring the property, and he replied that he hasn't.
I had a homebuyers survey done by a good surveyor, he didn't pick up any issues with the house.

Should I just trust the survey and not be bothered by the fact that the house has no building insurance? We are a day away from the planned exchange.

Another thing that I'm not sure about is that the house is an end of terrace coastal property and had the whole end wall covered by cladding just 2 years ago. However, the vendor says he has no warranty for the cladding work and that he did it for cosmetic reasons. He provided the name of the company who did the work, but again to me it seems unusual not to have any warranties or any report on the condition of the brickwork that is now covered by cladding. 
Other houses on that street also have some cladding, it's not unusual so close to the sea, but if the brickwork is very deteriorated under the cladding that might be an issue in the future. Nothing on the interior indicates that it might be the case at present. The house is a brick townhouse built in the 1970s.

Am I worrying too much about the cladding and the insurance, or should those be a red flag?

user1977

Have you got your own quotes for insurance yet? I would hope so if you're just about to exchange.

pumas

I let insurance lapse on my 2nd home, minimal risk. I did get it just to reassure vendor.

canaldumidi

House insurance is like any other - you either pay annual premiums which mount up over the years, or don't bother and take the slight risk of an insurable risk arising.

As buyer, what the previous owner decided to do is not your problem.

Provided that

a) on the date of Exchange the property is still OK (not burned to the ground). and

b) you insure it yourself from Exchange,

then there is no risk to you

Not much you can do about the cladding. A survey won't help as the surveyor won't be able to see beneath it. So yes, there's a small chance it covers up poor brickwork. But honestly, why would the owner pay £whatever for cladding without making good any brickwork issues? I suppose if it had been done immediately prior to marketing that might raise alarm bells, but 2 years ago?

uneverknow

Thanks everyone, I was a able to get some quotes online so I take that as a good sign, and also from reading all your comments it sounds like not that big of a deal. 

Thrugelmir

uneverknow said:

Should I just trust the survey and not be bothered by the fact that the house has no building insurance? We are a day away from the planned exchange.

You'll need to insure the house. Once contracts are exchanged you are committed to the purchase. Even if the property burns down prior to completion. 

uneverknow

I am aware that I need to insure it, I was just wondering if there was something about the house or the brickwork that is now concealed by the cladding covering the entire wall, that would have caused insurance problems in the past and I have no way of determining it now except taking the vendor's word for it.

p00hsticks

Did the seller fill in a TA6 Property Information form and if so, how did they complete Section 6 ?

That asks if they currently insure the property and, if they don't, to say why.

gozaimasu

Thrugelmir said:

You'll need to insure the house. Once contracts are exchanged you are committed to the purchase. Even if the property burns down prior to completion. 

Or if a bus/lorry/car comes crashing through the front room. Been a few of those stories over the years!