Buildings insurance from exchange of contracts

annetheman

Mine is Ageas, it is buildings and contents and “ready to start from exchange”. Sum assured buildings insurance £168,953, sum assured contents £19,000, premium £52.38. 

Could’ve gone cheaper with just buildings tbh. 

PKBadboy

Jemma01 said:

My solicitor said that I must have building insurance on exchange as I'm legally responsible for protecting the property from that point.
I'd expect all building insurance companies to cover on exchange. I went with MBNA.

I notice this is a year old but do you know if you were covered for more than 30 days.  Mine is a new build, exchanged on 13/10/25 completing approx 5/12/25 so nearly two months. Most companies I have spoken to won’t touch it because empty for more than 30 days and same as you my solicitor says I need to get buildings insurance. 

Thanks 

PKBadboy

If anyone can recommend an insurance company that covers more than 30days empty to cover between exchange (13/10/25) to completion (5/12/25 approx) 

solicitor says I need it, struggling to get companies to cover.  Have emailed solicitor to tell me one others have used but no response.

user1977

PKBadboy said:

Jemma01 said:

My solicitor said that I must have building insurance on exchange as I'm legally responsible for protecting the property from that point.
I'd expect all building insurance companies to cover on exchange. I went with MBNA.

I notice this is a year old but do you know if you were covered for more than 30 days.  Mine is a new build, exchanged on 13/10/25 completing approx 5/12/25 so nearly two months. Most companies I have spoken to won’t touch it because empty for more than 30 days and same as you my solicitor says I need to get buildings insurance. 

Newbuild as in you're buying from the builder once they've finished construction? Normally you only need cover from completion, it's covered by the developers' insurance until then. Are you sure your contract says different?

GDB2222

Actually, you only need insurance from exchange if your purchase contract says that you are on risk from exchange. Under the current Standard Conditions of Sale that are part of virtually all home purchase contracts in this country, the buyer assumes responsibility for the property from exchange. BUT the parties are free to negotiate  any amendments to the standard conditions that they want.

If there's a problem for you as the buyer to arrange insurance before completion, then go back to your solicitor and instruct him that the contract needs to be amended so the risk remains with the seller until completion. Since most vendors have insurance, that should not create major problems for them.

Tabieth

Given that at exchange of contracts the buyer is legally obliged to purchase the property, it seems a no brainer to me! 

eddddy

Tabieth said:

Given that at exchange of contracts the buyer is legally obliged to purchase the property, it seems a no brainer to me! 

But the question here is... Who is legally obliged to insure the property from exchange of contracts?

As @GDB2222 and others say, the current Standard Conditions of Sale say that it is the buyer's responsibility, but it's possible to modify those conditions.

And for example, with auction properties, it's often the seller's responsibility to insure between exchange of contracts and completion.

And obviously, that doesn't apply to (most) flats, and probably doesn't apply to Housing Association shared ownership properties, newbuilds, etc.

GDB2222

Tabieth said:

Given that at exchange of contracts the buyer is legally obliged to purchase the property, it seems a no brainer to me! 

The standard conditions used to make insurance the responsibility of the seller, then it was swapped in the latest version. I think you are right, that in an ideal world you would want to insure the property you are bound to buy. However, this thread is about people having difficulty finding insurance, which must be a problem for a lot of new build homes, for example, as they are vacant and there is often a long delay between exchange and completion. 

user1977

GDB2222 said:

Tabieth said:

Given that at exchange of contracts the buyer is legally obliged to purchase the property, it seems a no brainer to me! 

The standard conditions used to make insurance the responsibility of the seller, then it was swapped in the latest version. I think you are right, that in an ideal world you would want to insure the property you are bound to buy. However, this thread is about people having difficulty finding insurance, which must be a problem for a lot of new build homes, for example, as they are vacant and there is often a long delay between exchange and completion. 

As I said above, I've not heard of it being required for newbuild properties. At the point of exchange you may be insuring a plot of mud in a field! It's covered by the developer's insurance during construction and until completion of the sale.

GDB2222

user1977 said:

GDB2222 said:

Tabieth said:

Given that at exchange of contracts the buyer is legally obliged to purchase the property, it seems a no brainer to me! 

The standard conditions used to make insurance the responsibility of the seller, then it was swapped in the latest version. I think you are right, that in an ideal world you would want to insure the property you are bound to buy. However, this thread is about people having difficulty finding insurance, which must be a problem for a lot of new build homes, for example, as they are vacant and there is often a long delay between exchange and completion. 

As I said above, I've not heard of it being required for newbuild properties. At the point of exchange you may be insuring a plot of mud in a field! It's covered by the developer's insurance during construction and until completion of the sale.

That makes perfect sense, so I don’t really understand why PKB was told he needs insurance. Particularly as he seems to have exchanged a week ago!