No buildings insurance at exchange

Brie

sarah2022 said:

Thanks @user1977. I guess I see it as negligence as they failed to take proper care over meeting our mortgage terms. It is surely their legal responsibility to ask us for the policy before exchanging as it is a requirement of our lender. Because nothing happened to the house , doesn't make it OK for me that they exposed us to that risk because they didn't do their job and ask for sight of the policy. I think my frustration is a long list of issues I've had through the process with the solictors, so perhaps this is the final straw situation for me. 

Given how much solicitors get paid for sorting out all the bumpf for a house purchase one would hope they got it all right.

Frankly as you've gotten this far I would let it slide until you've paid the final bill (if you haven't already) and then send a letter of complaint.  I doubt anything will happen as a result but perhaps it will alert someone in the practice that a bit more scrutiny is required.

user1977

It would be a complaint about poor service (sounds like you may have other things to add to the list!), not professional negligence.

UnderOffer

Years ago you had to make enquiries with insurance companies, they’d post you forms, you’d complete and return and start the policy, insurer would post you back the insurance certificate and you’d provide copy to your solicitor. Nowadays you can go online and be insured in under 5 minutes. 

So I think the wording of “provide a copy of the policy” is just old school, as most solicitors working on behalf of your lender will be aware you can take out insurance immediately. Doesn’t help that they didn’t remind you though. But looks like it’s all done now. 

3card

When we purchased our house 21 years ago the solicitor told us about the requirement to have building insurance in place at exchange but he then told us that as part of this costs he provides cover from exchange to completion so we didn't need to worry about it

I wonder why solicitors don't do the same nowadays

pinkteapot

If nothing happened to the house, just let it go. Send a quick email to the solicitor’s complaints address if you need to get it off your chest (our solicitors have always asked us to send a copy of the insurance after exchange), but don’t stress about this now - you’ve got enough to worry about when buying and moving! Don’t worry about what could have happened but didn’t. 

There’s always a gap of minutes/hours anyway. I’ve always had quotes and known which insurer I’d use before exchange, but not actually taken out the policy until exchange has been confirmed. Your alternative I suppose is to take it out and cancel in the cooling off period of exchange doesn’t happen. 

badger09

pinkteapot said:

If nothing happened to the house, just let it go. Send a quick email to the solicitor’s complaints address if you need to get it off your chest (our solicitors have always asked us to send a copy of the insurance after exchange), but don’t stress about this now - you’ve got enough to worry about when buying and moving! 

I was going to suggest writing a calmly worded complaint about this, and anything else they ‘forgot’ to do, after completion when OP is settled in their new home. 

Really no point adding to the ‘to do’ list at this already stressful time. 

speedypete2022

When I bought my place there was just one line at the bottom of a letter from the solicitor about having insurance in place. It was never chased up or checked by them. 

The lender on the other hand was VERY hot on making sure so although the solicitor should have been more proactive they probably assume the lender will check

Flugelhorn

I bought a house a few years back and the vendor wanted 8 weeks between exchange and completion, solicitor pointed out that insurance companies won't cover property if you are not resident in it for that length of time so put a clause into the contract that the vendor had to continue to insure it until completion

Bendy_House

I haven't read through the links provided, but one question comes to mind - at 'exchange of contracts' (ie, before 'completion'), who does the property belong to?

Surely the vendor? In which case, if it burns down, then they carry the insurance can? Surely?

The very worst the buyer would be potentially out of pocket by, is the deposit, and even that should not be at risk (ie, it's the vendor who has defaulted on the contract, by, er, no longer having a house...).

I have never taken out insurance on a property purchase with a date prior to actual 'completion'. Gulp - was I wrong?

canaldumidi

Bendy_House said:

I haven't read through the links provided, but one question comes to mind - at 'exchange of contracts' (ie, before 'completion'), who does the property belong to?

Belongs to the original owner (vendor) till Completion.

Surely the vendor?Correct

In which case, if it burns down, then they carry the insurance can? Surely?  Y

Yes..... and no. After Exchange, the buyer is contractually obligated to purchase - even if the property is a burnt wreck.....

The very worst the buyer would be potentially out of pocket by, is the deposit, and even that should not be at risk (ie, it's the vendor who has defaulted on the contract, by, er, no longer having a house...).

I have never taken out insurance on a property purchase with a date prior to actual 'completion'. Gulp - was I wrong?

Yes you were wrong.

Take a look at the typical contract the Standard Conditions of Sale (5th edition – 2018 revision)see section 5 "Risk and insurance"