How essential is Buildings insurance on exchange?

Ian_W

sjmburrows wrote: »

I always thought that a fundamental principle of English law is that you can't insure somebody else's property, so how can you insure a house between exchange and completion?

It's a fundamental point of English Law that you must have an "insurable interest" before you can take out insurance on something. Having signed and exchanged a contract committing you to purchase land and property on a specified completion day irrespective of what happens to it after exchange would IMHO give you such an interest.

Very often your solicitor, acting also for your lender, will be required by them to see proof that you have insured the property at exchange. If you don't have a lender then the solicitor will cover their own back by strongly advising you to insure.

£600 seems an awful lot for insurance for what is usually only days or weeks between exchange and completion.

2005 seems a long way to go back to resurect a thread - there was one a few days ago, I'll see if I can find it and post a link.

It's HERE.

cherry76

I am going to exchange next week and have asked my solicitor about insurance. He said it is advisable to do so but he is not going to ask to see proof of insurance.

Woby_Tide

cherry76 wrote: »

I am going to exchange next week and have asked my solicitor about insurance. He said it is advisable to do so but he is not going to ask to see proof of insurance.

Because you are paying him and he isn't lending you the mortgage money personally I imagine.

Heathcliff1234

We exchanged contracts on the 19Nov, had a burst pipe at the end of Nov, completed on the 10th Dec. Insured on exchange - massive water damage and now our insurers will not validate our claim as the sellers were still insured. The sellers contract of sale passes the risk on to our insurance and ours will not pay and have passed the buck. My wife is ready to explode:mad:

DVardysShadow

Heathcliff1234 wrote: »

We exchanged contracts on the 19Nov, had a burst pipe at the end of Nov, completed on the 10th Dec. Insured on exchange - massive water damage and now our insurers will not validate our claim as the sellers were still insured. The sellers contract of sale passes the risk on to our insurance and ours will not pay and have passed the buck. My wife is ready to explode:mad:

Best to start a new thread - someone will add a link to this one. Reason is that this one looks like it will run for a while and it will be best to have a thread with your problem at the top.