House insurance after Exchange but before Completions

ZandoZabo

Chandler85 said:

If the property you are buying is empty and you have more then 60 days between exchange and completion, then you can use a company like Adrian Flux to buy insurance.

I had to do it recently, as in within the last few months.  I got a buildings only (they don't do contents) for a 6 month period, this was the shortest offer and it cost me £170 or so.

As soon as you get to within 30 days of completion you can speak to your current home insurer.

I've now agreed a delay on exchange, but your quote is significantly less than I was being quoted. I doubt I'll be needing it, but others reading this may wany to investigate your suggestion.

ZandoZabo

user1977 said:

Isn't the simpler answer to agree that the seller retains the risk until completion?

Without going into detail, their insurance cover cannot be extended beyond the date of exchange.

ZandoZabo

BarelySentientAI said:

cjdew said:

Why do you want to cover it before completion?? You want it from move in day, not before would have thought. 

shiraz99 said:

It's not for you to insure, until completion the property remains the responsibility of the seller.

Usually - in effect always unless someone specifically changes the contract - the risk passes to the buyer on exchange.

https://www.alanboswell.com/news/building-insurance-exchange/

https://foskettmarr.co.uk/exchange-to-completion-who-insures/

https://www.completelymoved.co.uk/conveyancing/advice/why-buyers-need-buildings-insurance-at-exchange-of-contracts

https://www.lv.com/insurance/press/two-in-five-homeowners-unaware-of-need-for-buildings-insurance-at-exchange

That saves me from answering!

ZandoZabo

propertyrental said:

You're the buyer?

why not take out an annual policy from Exchange?

Because more than 30 days before completion and because property is unoccupied, only building insurance for empty property is possible. This is more expensive and has requirements that are impractical in these particular circumstances. Although possible to convert to standard house insurance after completion, I can get no indication of costs or cover options.

ZandoZabo

AlexMac said:

I know I’m always banging on about how good Nationwide mortgages are, but as well as having given me great deals, cheap portable rates and phenomenal customer service …

… last time we moved, they offered cover from Exchange to Completion if you took out their insurance. OK, a bit dearer than some, so we switched after 12 months…(oops! Don’t tellem)

Exchange2Completion won't cover an unoccupied property.

newsgroupmonkey_

BarelySentientAI said:

cjdew said:

Why do you want to cover it before completion?? You want it from move in day, not before would have thought. 

shiraz99 said:

It's not for you to insure, until completion the property remains the responsibility of the seller.

Usually - in effect always unless someone specifically changes the contract - the risk passes to the buyer on exchange.

I'm absolutely shocked that people don't know this. With my wife being in this game, we clearly knew, but our solicitor was very clear to point this out to us.

When you say usually, it's almost always with a freehold. If it's leasehold, then clearly the freeholder will always have buildings insurance and contents isn't quite such a bad thing.

As for why the OP needs 60 days, I'm guessing this is a new build?

KittenChops

We had 5 weeks between exchange & completion - the house we bought was unoccupied.  Agreed through solicitors that the seller would continue to insure between exchange & completion.  Easy.

DullGreyGuy

newsgroupmonkey_ said:

BarelySentientAI said:

cjdew said:

Why do you want to cover it before completion?? You want it from move in day, not before would have thought. 

shiraz99 said:

It's not for you to insure, until completion the property remains the responsibility of the seller.

Usually - in effect always unless someone specifically changes the contract - the risk passes to the buyer on exchange.

I'm absolutely shocked that people don't know this. With my wife being in this game, we clearly knew, but our solicitor was very clear to point this out to us.

When you say usually, it's almost always with a freehold. If it's leasehold, then clearly the freeholder will always have buildings insurance and contents isn't quite such a bad thing.

As for why the OP needs 60 days, I'm guessing this is a new build?

The lease will determine if it's the freeholder or leaseholder that has to buy the buildings insurance, most commonly its the freeholder but it isn't universal. 

Contents would be an odd thing to buy for your new property whilst none of your contents is in there. 

RHemmings

I think I may have made an error when I bought. I just bought normal house insurance on the day of exchange. I wasn't aware of needing anything specialist.

Fortunately nothing happened to the house in the three days (weekend) between exchange and completion. 

newsgroupmonkey_

DullGreyGuy said:

newsgroupmonkey_ said:

BarelySentientAI said:

cjdew said:

Why do you want to cover it before completion?? You want it from move in day, not before would have thought. 

shiraz99 said:

It's not for you to insure, until completion the property remains the responsibility of the seller.

Usually - in effect always unless someone specifically changes the contract - the risk passes to the buyer on exchange.

I'm absolutely shocked that people don't know this. With my wife being in this game, we clearly knew, but our solicitor was very clear to point this out to us.

When you say usually, it's almost always with a freehold. If it's leasehold, then clearly the freeholder will always have buildings insurance and contents isn't quite such a bad thing.

As for why the OP needs 60 days, I'm guessing this is a new build?

The lease will determine if it's the freeholder or leaseholder that has to buy the buildings insurance, most commonly its the freeholder but it isn't universal. 

Contents would be an odd thing to buy for your new property whilst none of your contents is in there. 

It's very unusual for the leaseholder of a flat, in particular, to be buying buildings insurance.
But yes, it could be for a house.

That was my point about contents. It's completely unnecessary - sorry, was badly worded.