WARNING - Insurance from exchange of contracts

diystarter7

MikeJXE said:

Noneforit999 said:

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. 

I agree

I'm 80 odd and 10 homes, my solicitor has always told me insure at exchange 

I don't get why this problem is cropping up so often, yesterday on another thread someone was advised to insure at completion which is totally wrong

I'm not even sure why the question is even asked, surely the advice is flagged up in correspondence between solicitor and client in first contact and immediately before exchange 

Hi

It ca happen as solictors are like anny professional, they may not be great at their job or just forget - not good but it happens and those buying first time or even third as most dont buy a property every week, the OP's post is helpful

Thanks

diystarter7

movilogo said:

It is solicitor's responsibility to remind buyer to insure it upon exchange.
While the seller can claim on their insurance, they are unwilling to do because they have to declare this claim in their subsequent insurances which would up their premium.

Hi
But as my above post, people/solcitors can forget,
I thought it was always the case to get insurance on exchange but not mandatory as we all know.

Take care

EssexHebridean

The instruction to insure the property from point of exchange forms a part of the standard correspondence sent to clients ahead of exchange happening. 

Marvel1

MikeJXE said:

Noneforit999 said:

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. 

I agree

I'm 80 odd and 10 homes, my solicitor has always told me insure at exchange 

I don't get why this problem is cropping up so often, yesterday on another thread someone was advised to insure at completion which is totally wrong

I'm not even sure why the question is even asked, surely the advice is flagged up in correspondence between solicitor and client in first contact and immediately before exchange 

I oinly did the 1 and was never told by my solictor, I wasn't told anything, I had to phone to get a date sorted - everything else was done as the week later it was complated.

diystarter7

Marvel1 said:

MikeJXE said:

Noneforit999 said:

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. 

I agree

I'm 80 odd and 10 homes, my solicitor has always told me insure at exchange 

I don't get why this problem is cropping up so often, yesterday on another thread someone was advised to insure at completion which is totally wrong

I'm not even sure why the question is even asked, surely the advice is flagged up in correspondence between solicitor and client in first contact and immediately before exchange 

I oinly did the 1 and was never told by my solictor, I wasn't told anything, I had to phone to get a date sorted - everything else was done as the week later it was complated.

Hi
Thanks as I said people forget or like any profession some are not that great in this area of work

All in all, thanks to OP for the head up.

Thanks

Edi81

I bought in November. It was very clear in the letter I got from the solicitor prior to exchange.

EssexHebridean

Edi81 said:

I bought in November. It was very clear in the letter I got from the solicitor prior to exchange.

Yes - it should be from any reputable solicitor or licensed conveyancer - this is not something that will simply be forgotten. 

jak

I was reminded by my solicitor before exchange that I would need insurance from the day of exchange. To be fair, as a first time buying, I wouldn't have realised otherwise if I wasn't on here so much. 
x

justcat01

I'd be interested to know how the owner wouldn't cover the repair (via cash or insurance), when I was of the understanding that the house would need to be in the same condition as it was on exchange? Granted, I don't know what happens if it isn't, but you've got me wondering now!

Also, add to the chorus of solicitor wanted confirmation of insurance prior to exchange...

eddddy

justcat01 said:

I'd be interested to know how the owner wouldn't cover the repair (via cash or insurance), when I was of the understanding that the house would need to be in the same condition as it was on exchange? 

It needs to be in the same condition... in the sense that the owner mustn't do anything that changes its condition (or allow anyone else to do anything that changes its condition).

So the owner mustn't do stuff like...
- cut a pipe to cause a flood
- set fire to the house
- knock holes in walls
- remove the boiler or central heating

But unforeseeable events (that an insurance policy would normally cover) are the buyer's responsibility, for example..
- a pipe unexpectedly bursts
- a hidden electrical fault unexpectedly causes a fire
- the building is unexpectedly struck by lightening