19 September 2014
Many insurers won’t give you a quotation to insure your property from exchange to completion of purchase contracts. Instead they will only cover you once you have moved into the property. But if you are legally obliged to insure from exchange of contracts, where do you find it?
01 July 2017
Unfortunately, not all insurers will provide this cover. Because you do not yet live in the property, it will either be occupied by other people or even unoccupied during the period between exchange and completion, so household insurance policies are not suitable for covering the property.
Many insurance policies will include the benefit of cover between exchange and completion to a purchaser of a property already insured by the vendor. However, no purchaser can rely on that insurance policy, as the cover is provided only as an additional line of protection for the vendor (the policyholder) and is not designed to serve the purchaser. Furthermore, there is no guarantee that the purchaser:
a) has insured the property for an adequate amount
b) has not made errors on his proposal or application making his insurance policy void
c) has paid their premiums up to date
d) has not failed to comply with any terms in his policy which could invalidate cover, or to notify their insurer of any changes which could also cause the policy to be void.
It is therefore important that as the purchaser of a property, you arrange buildings insurance from the moment you exchange contracts. You may need a specialist insurer to do this, as many of the large household insurers decline to offer a quote until you have moved in.
Here’s a really useful article giving more information.