Exchange to completion insurance

ftb_eastmidlands22

I'm due to exchange next week (fingers crossed) so have been getting a current batch of buildings and contents insurance quotes ready for exchange day however i'm concerned that my insurance would be invalid/not pay *should* anything happen during that time period as i'm not actually in the house? Does anyone have any recommendations for insurers that cover this time period?

I had always assumed i could just pay for a policy from a comparison site etc and be done for the year, not that I would need specialist insurance for that period! 

jonnydeppiwish!

It’s called normal home insurance - pretty sure if you look at a thread from today you’d find the advice already there for you.

Spreadsheetman

There are various brokers that offer exchange to completion insurance (the same ones that do 2nd home and unoccupied property insurance), although I think a lot of people either just risk it or don't realise that their insurance isn't valid.

I'll be looking in to it on my current purchase (if it happens) as there are probably 3+ months of renovations to do where we won't be staying overnight, so need to have specialist coverage for that period.

Heres_the_deal

See my current thread on the same issue.   After checking and double checking (thrice), I took out a building and contents policy via cashback using an animal dressed in a smoking jacket. Cost me around £90, the same as it would had I moved in.

I tried several specialist sites before that and couldn't get a quote below £190, plus they wanted a survey report dated within the last 16 days.

I obtained confirmation in writing from three insurers that I would be fully covered using the template they provided for answering the core questions.

kingstreet

Once you exchange contracts you have an insurable interest so occupation or otherwise isn't relevant to buildings insurance.

Under 5th edition standard conditions of sale, purchaser accepts risk from exchange so needing cover from then (other than for a newbuild) is totally normal.

It's just a bit too complicated for the aggregators to deal with.

canaldumidi

Heres_the_deal said:

See my current thread on the same issue.   .....

https://forums.moneysavingexpert.com/discussion/6373714/issue-with-buildings-insurance-at-point-of-exchange/p1

Sandtree

kingstreet said:

Once you exchange contracts you have an insurable interest so occupation or otherwise isn't relevant to buildings insurance.

Under 5th edition standard conditions of sale, purchaser accepts risk from exchange so needing cover from then (other than for a newbuild) is totally normal.

It's just a bit too complicated for the aggregators to deal with.

Occupation is totally relevant to Home insurance... when you buy insurance you must answer all questions honestly and accurately as for day 1 of the policy incepting, if circumstances subsequently change you must then notify your insurers.

If you are insuring from exchange and assuming exchange/completion aren't happening on the same day then in theory all those questions about who's living in the property and what business activities are happening should be answered as at exchange - ie giving details of the seller and what business they may be doing in the property etc. Then on completion you in theory have to call back and change it all over to your details.

More of an issue is that Home insurance requires the property to be your primary residence, this can be seen through the definitions of terms in the policybook. LV= direct policy for example states you must own the property and that you or your family (not random other people) must have slept in the property for 2 continuous nights in the last 60 days. Obviously at exchange you dont own it so fall foul of that and you've never slept in it so you'd have to declare it unoccupied which LV= will then cancel the policy.

In practice people ignore what they should be doing and what the policy book says (namely because they haven't read it) and just buys a standard home insurance policy giving their family details even though they aren't true on day 1. I've yet to see a claim made before completion 

Heres_the_deal

Sandtree said:

kingstreet said:

Once you exchange contracts you have an insurable interest so occupation or otherwise isn't relevant to buildings insurance.

Under 5th edition standard conditions of sale, purchaser accepts risk from exchange so needing cover from then (other than for a newbuild) is totally normal.

It's just a bit too complicated for the aggregators to deal with.

If you are insuring from exchange and assuming exchange/completion aren't happening on the same day then in theory all those questions about who's living in the property and what business activities are happening should be answered as at exchange - ie giving details of the seller and what business they may be doing in the property etc. Then on completion you in theory have to call back and change it all over to your details.

More of an issue is that Home insurance requires the property to be your primary residence, this can be seen through the definitions of terms in the policybook. LV= direct policy for example states you must own the property and that you or your family (not random other people) must have slept in the property for 2 continuous nights in the last 60 days. Obviously at exchange you dont own it so fall foul of that and you've never slept in it so you'd have to declare it unoccupied which LV= will then cancel the policy.

In practice people ignore what they should be doing and what the policy book says (namely because they haven't read it) and just buys a standard home insurance policy giving their family details even though they aren't true on day 1. I've yet to see a claim made before completion 

As I noted in my thread, I concur with you on all these matters. Hence when contacting the insurers I specifically requested they address these questions. I asked them to look at the information I provided for the quote, and if my answers would be problematic if I made a claim. They responded by saying I would be fully covered in the event of a claim based on my answers.

How their written response would stack up in front of an insurance ombudsman in the event of a declined claim, I couldn't say.

ftb_eastmidlands22

@Heres_the_deal i think your thread is what made me go into google hell researching it all! My vendor has been a nightmare so i think this is just making me worry (i did a pre-exchange viewing today and it looked like they have just stopped bothering to clean or care about the house). Actually dreading completion day...

Heres_the_deal

ftb_eastmidlands22 said:

@Heres_the_deal i think your thread is what made me go into google hell researching it all! My vendor has been a nightmare so i think this is just making me worry (i did a pre-exchange viewing today and it looked like they have just stopped bothering to clean or care about the house). Actually dreading completion day...

Sods law has had me on the ropes twice in my life, I don't wish to experience a third - that will never happen - scenario that costs me dearly. Research, research and research pays off in the end !

Flugelhorn

when we exchanged on a property, the vendors wanted 8 weeks to find rental property, we reluctantly agreed (wish we hadn't lockdown happened and chaos reigned) - our solicitor said that owing to the length of time the insurance companies wouldn't cover it and hence it was written in that the vendors had to continue to insure the property .