Buildings insurance from exchange of contracts

Yorkie1

GDB2222 said:

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! 

Perhaps the Std Conds were used without anyone amending them to take account of the fact it's a new build?

user1977

Yorkie1 said:

GDB2222 said:

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! 

Perhaps the Std Conds were used without anyone amending them to take account of the fact it's a new build?

More likely that the solicitors have copied and pasted some generic advice.

GDB2222

SURELY, people read and thoroughly understand the contract before signing it? So, they would know what it says about risk. Surely? And, they would obviously read and carefully study the standard conditions that form part of the contract.

 After all, this is the biggest purchase of their lives, with ruinous consequences if things go wrong.