Exchange and Home Insurance

uzoma85

Hello everyone, I just exchanged today and the solicitor has made me aware that I now need to put in place my home insurance. 

Completion date is 4th of August. I am confused about the date i should kickstart the insurance. The solicitor said it is immediately as i am now liable for the property but the Vendor is still in the property until the key is handed over on the 4th of August. 

Any help is appreciated. 

Martico

Your solicitor is correct - you need to have it insured from exchange

uzoma85

Thank you for the feedback. Just wanted to confirm that even though I do not have the key yet, insurance starts from today/tomorrow. 

Martico

Just googled this piece, which explains it better than I can
https://www.quittance.co.uk/conveyancing/advice/buying-a-property/why-buyers-need-buildings-insurance-at-exchange-of-contracts

uzoma85

Very helpful. Thank you 

user1977

I presume you're paying lots of money to your solicitor for their legal advice, so I suggest you follow it!

amnblog

In England and Wales, the property is at the risk of the buyer from the exchange of the Contracts.

Sometimes within the Contract there is a condition that the seller's insurance policy remains in force. In those circumstances the Contract insists that the Seller maintains the insurance until completion - that does not mean of course that they will.

Therefore, legally, it is your risk from exchange in nearly all cases.

Practically, why would you not insure from exchange.