When do I need to have building insurance and dec term mortgage ins in place, exchange or completion?

[befuzzled]

Just that, Dp panicking saying need it now as exchanged last week, I am saying the person that jas lived there for 8 years will still have buildings ins in place until she pays off mortgage at completion.

Decreasing term life ins guess you can get anytime, if we both die before completion he doesn't want the dc left with te new mortgae ( cheery soul )

[BananaPie]

On exchange - that's what we were told. Solicitor wouldn't let us exchange without it. I guess if the house falls down between exchange and completion, you're still legally bound to buy it, so you'd want it to be insured.

[PatriciaHolm]

We were told exchange too; you legally have to buy the house now, so it's your responsibility.

[herhonesty]

Buildings insurance should be in place at exchange. If you die before you complete you simply won't complete. Suppose estate might not get deposit back. Your children will not be left with either a mortgage or a house they have to pay for.

[befuzzled]

Cool. Thanks. Will get on with buildings insurance and try not to walk under any ladders in meantIme!

[Fizzylemonade]

Just to confirm what everyone said above, when you exchange you are legally bound to buy the house, if there was a gas explosion which demolished half the house you would want the insurance company to fund the rebuild.

Never assume that someone has buildings insurance, I know several people who at some time in the past haven't.

Best of luck with the house move.