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WARNING - Insurance from exchange of contracts

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  • Our solicitor informed us it was our responsibility to insure between exchange and completion, it was written in one of the documents....which I read. 
    It should be a standard reminder in the correspondence and reports sent out ahead of exchange.

    The majority of responsible solicitors have always advised to put your own insurance in place at exchange as regardless of the legal requirement, it can solve major issues in situations like this. I have a feeling that at least some lenders have also insisted on this for longer than the last 11 or so years too - I'm sure we had to ensure that our lender had sight of the block policy when we bought back in 2003. 
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  • Flugelhorn
    Flugelhorn Posts: 7,330 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Our solicitor informed us it was our responsibility to insure between exchange and completion, it was written in one of the documents....which I read. 
    It should be a standard reminder in the correspondence and reports sent out ahead of exchange.

    The majority of responsible solicitors have always advised to put your own insurance in place at exchange as regardless of the legal requirement, it can solve major issues in situations like this. I have a feeling that at least some lenders have also insisted on this for longer than the last 11 or so years too - I'm sure we had to ensure that our lender had sight of the block policy when we bought back in 2003. 
    It certainly is standard in all the letters I have had from my solicitor, even when it is buying a leasehold flat where the management company deal with the buildings insurance  :D - she was probably just checking that I was paying attention! 
  • MikeJXE
    MikeJXE Posts: 3,856 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Our solicitor informed us it was our responsibility to insure between exchange and completion, it was written in one of the documents....which I read. 
    It should be a standard reminder in the correspondence and reports sent out ahead of exchange.

    The majority of responsible solicitors have always advised to put your own insurance in place at exchange as regardless of the legal requirement, it can solve major issues in situations like this. I have a feeling that at least some lenders have also insisted on this for longer than the last 11 or so years too - I'm sure we had to ensure that our lender had sight of the block policy when we bought back in 2003. 
    It certainly is standard in all the letters I have had from my solicitor, even when it is buying a leasehold flat where the management company deal with the buildings insurance  :D - she was probably just checking that I was paying attention! 
    I think thats the main problem

    Buyers not reading instructions and advice from the solicitor and assuming it's on completion 
  • Domaco16
    Domaco16 Posts: 41 Forumite
    10 Posts
    We couldn’t exchange until we showed proof to our solicitors that we had got insurance :) 
  • TripleH
    TripleH Posts: 3,188 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Our solicitor said we needed to have insurance when we exchanged. As we exchanged and completed at the same time (moving rental to new build) this was quite informal and I think I sent the paperwork a few days after.
    Is the house ex-rental, because if the seller lives there I cannot think they wouldn't have some liability?
    This might not be correct advice but I would be sending a formal letter to them and suggest maybe they needed to accept responsibility and claim on their insurance because of their carelessness. (I'd be far ruder because I'd be peeved).
    May you find your sister soon Helli.
    Sleep well.
  • When I brought my house my solicitor actually wanted a copy of the insurance that I took out at exchange of contracts. 

    I guess doing that ensures their buyers are actually getting the insurance. 
  • Flugelhorn
    Flugelhorn Posts: 7,330 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    SaverRate said:
    When I brought my house my solicitor actually wanted a copy of the insurance that I took out at exchange of contracts. 

    I guess doing that ensures their buyers are actually getting the insurance. 
    they are probably required to do that if they are acting for the mortgage company too 
  • user1977
    user1977 Posts: 17,840 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    SaverRate said:
    When I brought my house my solicitor actually wanted a copy of the insurance that I took out at exchange of contracts. 

    I guess doing that ensures their buyers are actually getting the insurance. 
    they are probably required to do that if they are acting for the mortgage company too 
    No, all the lender cares about is whether it's insured at completion. Between exchange and completion is the borrower's problem.
  • GDB2222
    GDB2222 Posts: 26,243 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I take it that 5.1.4 of the standard conditions does not apply in this case?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    1,000 Posts First Anniversary Name Dropper
    Hi OP

    Sorry re your daughter and people can forget but its the solicitors always reminding us or doing the insurance for us.

    Good luck and thanks for those this post may be a head-up for

    :)
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