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  • FIRST POST
    • Poniato
    • By Poniato 28th Jun 18, 5:54 PM
    • 67Posts
    • 15Thanks
    Poniato
    Building insurance with exchanging of contract
    • #1
    • 28th Jun 18, 5:54 PM
    Building insurance with exchanging of contract 28th Jun 18 at 5:54 PM
    One of our solicitor's employee called me today (27th June) after 4 pm and confirmed, that funds arrived at their account and we are ready to exchange the contracts (seller's solicitor was very pushy to exchange today !)

    Our building insurance wasn't bought and I said that it's too late for our mortgage advisor to arrange this today, so it can start on 27th June. I have been told that I can buy it one day later date (28th June).

    At that moment I was concerned and asked what will be the scenario if something will happen to the property during the night. Who will cover that?


    So I asked for the details and confirmation, that seller actually has building insurance and if we will be covered for that night.

    She told me, that building insurance is in place, but could not respond to me with any details what will happen if for example will be a fire that night.

    I did not agree to exchange the contracts without building insurance that day. Sorry, I am not an expert, but could someone explain me how does it work and if my thinking was right ??
Page 1
    • Zorillo
    • By Zorillo 28th Jun 18, 11:14 PM
    • 523 Posts
    • 351 Thanks
    Zorillo
    • #2
    • 28th Jun 18, 11:14 PM
    • #2
    • 28th Jun 18, 11:14 PM
    I think you've been unduly cautious. Most good insurance policies contain a clause or extension covering the buying and or selling party during the period of exchange up until completion.

    Confirmation that the building was insured is presumably the most she can tell you about the other party's insurance arrangements. Why wasn't it enough?

    In reality, if it burnt down overnight on the day of exchange, the seller's policy would pick up the loss providing you hadn't already arranged your own insurance.
    • SG27
    • By SG27 29th Jun 18, 7:17 AM
    • 2,628 Posts
    • 1,848 Thanks
    SG27
    • #3
    • 29th Jun 18, 7:17 AM
    • #3
    • 29th Jun 18, 7:17 AM
    I think you've been unduly cautious. Most good insurance policies contain a clause or extension covering the buying and or selling party during the period of exchange up until completion.

    Confirmation that the building was insured is presumably the most she can tell you about the other party's insurance arrangements. Why wasn't it enough?

    In reality, if it burnt down overnight on the day of exchange, the seller's policy would pick up the loss providing you hadn't already arranged your own insurance.
    Originally posted by Zorillo
    This is not completely true. The seller could claim on their insurance policy or they could refuse to. Then on the completion date the buyer would still be legally bound by the terms of the contract and have to pay the agreed purchase price.
    • Zorillo
    • By Zorillo 29th Jun 18, 7:25 AM
    • 523 Posts
    • 351 Thanks
    Zorillo
    • #4
    • 29th Jun 18, 7:25 AM
    • #4
    • 29th Jun 18, 7:25 AM
    Wouldn't they be liable to repair the damage, though? So unless they were very odd, they'd claim (as we've already established the insurance is in place). But yes, technically you're right.
    • p00hsticks
    • By p00hsticks 29th Jun 18, 9:40 AM
    • 6,784 Posts
    • 7,417 Thanks
    p00hsticks
    • #5
    • 29th Jun 18, 9:40 AM
    • #5
    • 29th Jun 18, 9:40 AM
    Then on the completion date the buyer would still be legally bound by the terms of the contract and have to pay the agreed purchase price.
    Originally posted by SG27

    But by the same logic, isn't the seller also legally bound by the terms of the contract to deliver the property on the completion date in the same condition as it was at the point of exchange ?
    • LadyDee
    • By LadyDee 29th Jun 18, 10:26 AM
    • 3,541 Posts
    • 3,770 Thanks
    LadyDee
    • #6
    • 29th Jun 18, 10:26 AM
    • #6
    • 29th Jun 18, 10:26 AM
    I think you are right to be cautious OP - from a Google search Insure from the day you exchange contracts

    "You'd think that this insurance cover would need to start the day you moved in, but you actually become legally responsible the day you exchange contracts, so it needs to be in place from that date. If you already own a property you might need to overlap the insurance if there's a period of time where you're responsible for both. It's worth remembering that you don't have to stay with the same insurance provider and in fact, by comparing you may be able to save yourself some money."
    • lindens
    • By lindens 29th Jun 18, 10:44 AM
    • 2,362 Posts
    • 7,171 Thanks
    lindens
    • #7
    • 29th Jun 18, 10:44 AM
    • #7
    • 29th Jun 18, 10:44 AM
    One of our solicitor's employee called me today (27th June) after 4 pm and confirmed, that funds arrived at their account and we are ready to exchange the contracts (seller's solicitor was very pushy to exchange today !)

    Our building insurance wasn't bought and I said that it's too late for our mortgage advisor to arrange this today, so it can start on 27th June. I have been told that I can buy it one day later date (28th June).

    At that moment I was concerned and asked what will be the scenario if something will happen to the property during the night. Who will cover that?


    So I asked for the details and confirmation, that seller actually has building insurance and if we will be covered for that night.

    She told me, that building insurance is in place, but could not respond to me with any details what will happen if for example will be a fire that night.

    I did not agree to exchange the contracts without building insurance that day. Sorry, I am not an expert, but could someone explain me how does it work and if my thinking was right ??
    Originally posted by Poniato
    Why has your buildings insurance got anything to do with the mortgage adviser? I did it myself seconds after the phone call from my solicitor to say we were going to exchange today
    You're not your * could have not of * Debt not dept *
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