We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Buildings Insurance

JNYC
JNYC Posts: 1 Newbie
in Insurance & life assurance
My parents signed their house over to me, they still live there no rent is paid. apparently I have to secure the building insurance & they organise contents is this correct? I just got a quote for £566 which is shocking for buildings only 

Comments

  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Normally yes because they no longer have an insurable interest in the building. 

    Its possible to draw up a contract that makes them liable for the building in exchange for living their rent free, you may want a token £1 fee in case a lawyer wants to argue if there is consideration or not without it, and then that creates an insurable interest for them. They'd need to declare they aren't the owners when getting quotes. 
  • Flugelhorn
    Flugelhorn Posts: 7,578 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I suppose regarding the signing over the property and them living there rent free, we should quote the wonderful Sgt Wilson "Do you think that is wise?"
  • user1977
    user1977 Posts: 19,200 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    JNYC said:
    My parents signed their house over to me, they still live there no rent is paid.
    Leaving aside the insurance query - why on earth have they done that? I can think of several downsides and very few upsides....
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    user1977 said:
    JNYC said:
    My parents signed their house over to me, they still live there no rent is paid.
    Leaving aside the insurance query - why on earth have they done that? I can think of several downsides and very few upsides....
    Presumably to try and avoid IHT and maybe care costs
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    With no consideration paid there's also a potentially large CGT bill on the horizon. 
  • user1977
    user1977 Posts: 19,200 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    DullGreyGuy said:
    user1977 said:
    JNYC said:
    My parents signed their house over to me, they still live there no rent is paid.
    Leaving aside the insurance query - why on earth have they done that? I can think of several downsides and very few upsides....
    Presumably to try and avoid IHT and maybe care costs
    Well, yes, that's what I'm concerned about...
  • Flugelhorn
    Flugelhorn Posts: 7,578 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    @JNYC - am sure you and parents thought they were doing the right thing but this could cost you far more than the £556 in the long run
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.5K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 603K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture