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  • FIRST POST
    cuthbei
    Buildings insurance between exchange and completion
    • #1
    • 8th Apr 09, 2:49 PM
    Buildings insurance between exchange and completion 8th Apr 09 at 2:49 PM
    Hi,

    I have just exchanged contracts on a house but won't be completing until the 23rd June. I need buildings insurance between these two dates.

    Most insurance companies won't touch it because "I won't be living in the house for more than 30 days"! Of course I won't, it isn't my house yet.

    I tried a couple of brokers and they were no help.

    Any ideas who I could try?

    Thanks, Cuthbei
Page 1
  • virgo149
    • #2
    • 8th Apr 09, 4:25 PM
    • #2
    • 8th Apr 09, 4:25 PM
    Who is your mortgage with? When this was going to happen to us, we took the Nationwide insurance deal as they threw in this protection until completion. You could always then cancel later (t&c's providing).
    • dacouch
    • By dacouch 8th Apr 09, 4:26 PM
    • 20,693 Posts
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    dacouch
    • #3
    • 8th Apr 09, 4:26 PM
    • #3
    • 8th Apr 09, 4:26 PM
    Try different brokers as it is common practice for the purchaser to arrange cover on a property they are exchanging on.

    What is complicating yours is the gap between when you want cover and when you will be moving in.

    I would recommend trying more brokers, try local brokers rather than Swintons etc. If you have a building policy already I would expect them to offer cover as they are normally more willing to accomadate.
  • cuthbei
    • #4
    • 8th Apr 09, 6:52 PM
    • #4
    • 8th Apr 09, 6:52 PM
    Hi,

    Thanks for your help. The mortgage is with Natwest, who won't offer us a policy because the house is too old. We don't have a current buildings policy, we are renting at the moment.

    I think I'll get on the phone to a few brokers in the morning.

    Would you normally try and get an annual policy or a short term one? When I move in I'll need buildings and contents, so it would be nice if they were in sync. I could take both now I guess and just waste a few .

    Thanks, Cuthbeo
  • OhPoopy
    • #5
    • 9th Apr 09, 9:59 AM
    • #5
    • 9th Apr 09, 9:59 AM
    Hi Cuthbei,

    How did you get on with this? I'm in exactly the same boat: Exchanged yesterday, don't complete until the 15th June. Now I can't get the insurance companies to cover me based on the long gap between exchange and completion.

    Did you find anyone who could help?

    Thanks,
    OhPoopy.
    • dacouch
    • By dacouch 9th Apr 09, 10:02 AM
    • 20,693 Posts
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    dacouch
    • #6
    • 9th Apr 09, 10:02 AM
    • #6
    • 9th Apr 09, 10:02 AM
    Your first port of calls should be your current building provider and / or who ever is providing your mortgage as they will look on your more favourably. Failing that try some of the advice we have posted above
    • Quentin
    • By Quentin 9th Apr 09, 10:06 AM
    • 38,868 Posts
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    Quentin
    • #7
    • 9th Apr 09, 10:06 AM
    • #7
    • 9th Apr 09, 10:06 AM
    Your solicitor should have advised on this - once contracts are exchanged the property must be insured, otherwise should any disaster happen between now and completion then the problem will be yours, not the vendors.

    Normally if a mortgage is involved it is a condition that insurance is in place at exchange.
  • OhPoopy
    • #8
    • 9th Apr 09, 10:08 AM
    • #8
    • 9th Apr 09, 10:08 AM
    Your solicitor should have advised on this - once contracts are exchanged the property must be insured, otherwise should any disaster happen between now and completion then the problem will be yours, not the vendors.

    Normally if a mortgage is involved it is a condition that insurance is in place at exchange.
    Originally posted by Quentin
    Indeed.

    That'll be why I'm not going to approach the mortgage provider and ask for insurance after exchange has already happened......
    • Quentin
    • By Quentin 9th Apr 09, 10:10 AM
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    Quentin
    • #9
    • 9th Apr 09, 10:10 AM
    • #9
    • 9th Apr 09, 10:10 AM
    So why did your solicitor let you exchange without the insurance in place?
  • OhPoopy
    So why did your solicitor let you exchange without the insurance in place?
    Originally posted by Quentin
    Once again: Indeed!

    I've just spoken to him and he is going to write to the vendors solictor and request that they confirm in writing that they will continue insurance until completion date. Being as most of the problem is due to the enormous gap between exchange and completion which they insisted upon I'd have thought it is the least they could do.

    Cuthbei: Sorry I've hijacked your thread, but maybe the above would work for you too?
  • cuthbei
    I found a broker today that really understood the situation. They advised me to call the vendor and ask him to call his insurance company to add me as "an interested party". His insurance company seem to think this will be fine and they won't even charge.

    I'm not sure how my mortgage company will view this, but I'll be well insured anyway.

    Of course, this won't work if the vendor cancels the policy, but that won't happen as he has a mortgage as well.

    Thanks, Cuthbei
    • Quentin
    • By Quentin 9th Apr 09, 12:39 PM
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    Quentin
    See previous posts above on this - your solicitor has let you down, and shouldn't have allowed exchange to take place till the insurance is in place.
    • dacouch
    • By dacouch 9th Apr 09, 6:45 PM
    • 20,693 Posts
    • 12,824 Thanks
    dacouch
    I found a broker today that really understood the situation. They advised me to call the vendor and ask him to call his insurance company to add me as "an interested party". His insurance company seem to think this will be fine and they won't even charge.

    I'm not sure how my mortgage company will view this, but I'll be well insured anyway.

    Of course, this won't work if the vendor cancels the policy, but that won't happen as he has a mortgage as well.

    Thanks, Cuthbei
    Originally posted by cuthbei
    This might work but you would also need to ensure your mortgage companies name is also noted as an interested party. Have a word with your solicitor before you do anything as whatever you do it will have to be acceptable to them as they have to declare to the mortgage company suitable cover is in place that satisfies all their requirements (One of which is that the mortgage companies name is noted on the policy)
  • cuthbei
    Hi,

    Thanks for this. But my mortgage company won't be an interested party until it pays some money towards the house, which won't happen until completion. By that time I'll have a "normal" policy to cover buildings and content.

    Am I missing something?

    Thanks, Cuthbei
    • Quentin
    • By Quentin 9th Apr 09, 7:34 PM
    • 38,868 Posts
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    Quentin
    Yes. If a disaster happens to the new house today, you will still have to complete, but you won't get your mortgage!
    • dacouch
    • By dacouch 9th Apr 09, 7:48 PM
    • 20,693 Posts
    • 12,824 Thanks
    dacouch
    Before you complete your solicitor has to send a declaration to the mortgage company that cover is in place and it satisfies all their requirements eg covers the right things and notes their name on the policy. Without this being sent to your mortgage company they will not release the money and you will not be able to complete.
  • cuthbei
    So my plan is to get a policy as soon as one becomes available, I.e. 30 days before completion. The long gap between exchange and completion doesn't seem to work well. I won't be doing that again.
  • rainbird
    Why is this so difficult? I apparently legally require buildings cover on a property I am buying between exchange of contracts and completion - a period of about three weeks. Surprisingly the insurer on my current property Prudential say they cannot help as their underwriters will not cover property until I am in residence. As I now need to look for a new insurer some others have also said they will not provide cover until I am in residence. Is my problem caused by the fact that I will not need a mortgage on the new property I wonder as I understand the lenders of those buying with a mortgage are helped by their lender to arrange buildings cover between exchange and completion. This situation must happen to hundreds of thousands of people a year so why is it so difficult? Anyway any solutions appreciated.
    • InsideInsurance
    • By InsideInsurance 5th Jul 11, 3:13 PM
    • 22,215 Posts
    • 11,383 Thanks
    InsideInsurance
    I have to say I would challenge it being a legal requirement for you to have it.

    You could have a contractual obligation to have it either between you and the mortgage lender or between you and the seller but this is a different matter and one potentially for negotiation (though your unlikely to get anywhere with most high street lenders)
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