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Home Insurance - No cover if home for sale
Ms_Chocaholic
Posts: 12,703 Forumite
We are currently insured with RIAS for our buildings insurance. Rang them yesterday re home insurance and they advised that if we put our property on the market then the home insurance will be cancelled with 7 days notice. I was really surprised by this so went on live chat today and was told that if we put our property on the market mid-term then the insurance will continue until renewal but at the renewal point they will not continue the insurance. Clearly at odds, unsure who to believe and don't want to risk not being insured.
What would you do?
Is this normal? What did you do when you had your house for sale?
Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
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Just to add I did a quick quote for RIAS buildings insurance on their website and at no point did any of the questions ask if the property was for sale.
Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
That sounds odd to me. @DullGreyGuy?0
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One debt remaining. Home improvement loan.0 -
Is the property occupied? I could understand it if it was empty. What was the original purpose of your call?0
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The original purpose of my call was to ask about buildings insurance on my current home and a new home we are buying. The advisor spoke to the underwriters and said I could have insurance cover in place for both as long as neither was unoccupied for 90 days. She then said about the property being on the market and the insurance would have to be cancelled.I was confused so I went on live chat today to just ask about selling my property. Gave no details and didn’t mention the new property either. Adviser said that if property was put up for sale mid-term then they would continue to insure us up to renewal at which point they wouldn’t continue to insure us due to property being on the market.Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
Unsure who to believe at this point.Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
I suspect there's been a misunderstanding and they were talking about the approach they would take if it's unoccupied. If it's not a (rather odd) condition in your policy then you don't need to worry about it anyway, they can't just make up new rules retrospectively.0
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I’m not sure. The first advisor explained that we could have cover for both properties at the same time but was very clear that as soon as up for sale policy would be cancelled. I asked again to make sure I understood and she said this was one of the conditions.The second adviser on live chat didn’t know about the new property at all but just said we will not be offered a renewal if house for sale.Will ask on live chat again tomorrow/Friday when I have more time and will screenshot it.Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
Do you have a link to your policy book online?Ms_Chocaholic said:We are currently insured with RIAS for our buildings insurance. Rang them yesterday re home insurance and they advised that if we put our property on the market then the home insurance will be cancelled with 7 days notice. I was really surprised by this so went on live chat today and was told that if we put our property on the market mid-term then the insurance will continue until renewal but at the renewal point they will not continue the insurance. Clearly at odds, unsure who to believe and don't want to risk not being insured.What would you do?Is this normal? What did you do when you had your house for sale?
With general insurance you must have an insurable interest in what you are insuring at the point of claim, unlike life insurance where you only need the interest at point of purchase. As a consequence things get a bit murky when a property is for sale and in particular after you have exchange contracts as in principle the buyer is on the hook to buy it from you weather its in the condition they saw it in or if vandals broke in and smashed the place up. This is why you are told you should have insurance in place by the date of exchange for a place you are buying.
Most policies however have terms like this (stolen from Churchill's current wording):
The time between exchange and completion when selling your home
We will cover the buyer of your home under Section 1 until the sale completes, as long as the property isn’t insured under any other policy.
Certainly the policy doesn't get cancelled just because the property is up for sale, if your policy doesn't have wording like the above then effectively the you lose building cover from exchange because of there being no insurable interest as the buyer is committed to buy come what may.0 -
Found this during a quick read of general policy docs.
Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time1
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