Moving house... building insurance

ftb_deena

I'm in the process of buying a new home and my solicitor has asked me to send them building insurance information for the new property ASAP.

I don't have a completion date yet and take out building insurance with Admiral for my current home. 

I'm confused how I can take out building insurance for a home I'm not yet in, or have no date for move in?! 

DullGreyGuy

Once you've exchanged you are on the hook to buy it... do you want to buy a burnt down wreck? If not you should insure it. 

You cant buy until you have a date of exchange, the exchange normally sets the completion but technically thats irrelevant for the insurance. 

RogerPensionGuy

I think it's very best policy to insure house at exchange point from the buyers point of view.

I thought it was often a mortgage condition. 

Rodders53

Read your insurance documents...

Many of the better insurers will cover both homes for buildings risks during a move/sale/purchase period (although exact number of days may be limited).  (Also they often cover contents while being moved by professional removers.)

Whether the budget insurers like Admiral do... is a question you must ask.

Do advise the Insurer that you are planning to move and get a price for the new dwelling's premium (and any admin charge) due from the completion date.

DullGreyGuy

Rodders53 said:

Do advise the Insurer that you are planning to move and get a price for the new dwelling's premium (and any admin charge) due from the completion date.

Be aware however that many "insurers" are actually insurance brokers but when you buy from them you lock into both the broker and the insurer. Known several to have a nasty surprise after doing two new business quotes and thinking Budget (or some random other broker) looked good for both addresses only to later find out the two quotes were from different insurers and so the price on moving was massively higher than they expected. 

fiish

Since 2018, the terms of the standard contract for freehold sale/purchase put the responsibility of arranging buildings insurance on the buyer, from the point of exchanging contracts, as that is the point where the buyer has an 'insurable interest' in the property.

I'm not a lawyer, but my understanding is prior to this, the terms required buildings insurance only from the completion date, and the requirement for buildings insurance used to remain with the seller between exchange and completion.

When moving from one freehold to another, if you're selling your current home, you can move your buildings insurance to the new property from the day of exchange, as your current one should then be insured by your buyer (assuming you exchanged for both your sale and purchase on the same day).

Vannaa

Having buildings insurance was a condition of my mortgage offer. It's already set up -

The policy will be effective from the Exchange Date of the purchase of the property although I have no idea when that will be.

user1977

Vannaa said:

Having buildings insurance was a condition of my mortgage offer.

It'll be a condition that you have insurance in place from completion - exchange to completion is your risk, the lender hasn't handed over their money yet.