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Exchange to completion insurance
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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.
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.
Insurable interest starts from exchange of contracts; so insurance can be effected despite the purchaser not actually occupying the property from that point.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 -
kingstreet said: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.
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.
Insurable interest starts from exchange of contracts; so insurance can be effected despite the purchaser not actually occupying the property from that point.0 -
Here's details of one: https://vlex.co.uk/vid/national-farmers-union-mutual-793562533
Essentially,- The buyers exchanged contracts on 5th October 2007, with completion planned for 7th November 2007
- The buyers got a buildings insurance policy with NFU running from 4th October 2007 to 4th October 2008 - so it sounds like a 'standard' annual buildings insurance policy
- There was a fire on 27th October - and NFU (the buyer's insurer) paid a claim of £1.8m
But NFU wasn't an online insurer in 2007, so I guess the buyer discussed their requirements with an advisor, and likely mentioned the exchange/completion issue. And I believe that NFU have a reputation for being a fairer insurer than some others.
(The court case was actually about 'double insurance' - the property was also insured by the seller with HSBC, and NFU were trying to make HSBC cover part of the claim. But that didn't seem to impact NFU's decision to pay the buyer's claim anyway.)
As an aside, the buyers had to complete the purchase at the full agreed price, even though they were now buying a burned-out shell, needing £1.8m of repairs.
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I will confess this thread had me worried about sorting insurance out but I just called my current provider, who I have a multi policy with not buildings insurance as my current property is leasehold so the freeholder sorts the buildings insurance, and they just needed to know exchange date and completion date to do me a quote.
Obviously had to give estimated dates as we dont know definite exchange and completion dates yet but they said once we know the date just call back and they can set it up and take payment. No weird questions about the current occupiers etc etc0 -
Thanks all. I called my preferred insurers and got passed around various departments, first person said I don't need to bother with insurance until completion and kept repeating that my solicitor should be advising (which made no sense, how could they advise from an insurers perspective on t&cs when they are not the insurer...) they then put me through to claims as it would be them i would have to speak to if something did happen, claims departments couldn't answer the question and put me through to quotes?! the last person spoke to their manager and said it would be fine aslong as the vendor moves out within 60 days.
I'm a bit baffled that there isn't a clear answer for this given 100's of people buy houses everyday.
Anywho, I'm hoping to exchange tomorrow with completion on Monday so the gap is small but anything can happen at any time!0
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