Buildings insurance at Contract Exchange

[Deleted User]

I see that I need to have Buildings Insurance in place for new house when contacts are exchanged.

I guess can't just switch existing Building Insurance over because that would mean current property (which you'd still live in until you move) would be uninsured?

Or does that become the responsibility of the person buying from you? 

Also, deposit at exchange. Where does this come from? 

DullGreyGuy

In the first instance speak to your insurers about what they can offer to you. 

Most people buy contents and buildings together, you need buildings insurance on the other property but ideally both but contents only on your current home until completion and you moving in

Hoenir

Once contracts are exchanged you are committed to buy even if the property burns down. 

[Deleted User]

better get the new place insured then :-)

DullGreyGuy

Hoenir said:

Once contracts are exchanged you are committed to buy even if the property burns down. 

Thats the theory, economic risks transfers at exchange hence you insurer it. 

In practice people may try to break contract, you then have to sue them for you losses but they dont have £400,000 in the bank to pay you plus you've been unable to complete so you've lost your deposit and you have a burned out ruin to live in... hence its prudent to have insurance on both properties.

incus432

Many insurers will offer to cover buildings on your new home from exchange if you insure your current home with them. Phone your current insurer

[Deleted User]

Ah correct. They will cover both properties for buildings only for the short period.