Home insurance when moving(7 Posts)
Hi all, could use some advice regarding sorting out home insurance when moving.
Our situation is that we have sold our current house and look to be moving into our new house in around a month. We don't yet have any dates for exchange/completion, but everything is progressing smoothly, surveys fine, searches in progress, mortgage applied for from agreement in principle, etc.
It's a short chain (3 families) and we're the end of it, as we're moving into a vacant new property currently held by a bank after the building firm went bust.
We have building and contents insurance on our current property, due to run through until May next year. Paid in full at the start of the policy. I'm happy with the company, so I was hoping/planning just to transfer our policy to the new property.
Our insurance costs should be lower at the new property (much safer area) but I'm not expecting to get any money back. Just hopefully have lower premiums next year!
We have a mortgage on our current property and will have a bigger mortgage on our new property.
One of the things I've been reading is that our mortgage offer for the new house will be dependant on building insurance being in place. However the solicitors can't give us a date for exchange/completion until we have a mortgage offer.
I've also been reading that the building insurance needs to be in place from the date of exchange, whereas contents insurance should stay at our existing property until date of completion.
So, how and in what order do I do things?
Can I show the bank a copy of my existing building insurance from the property we're leaving, and tell them we're planning on transferring it?
Do I need to take out an additional building insurance policy for the week(s) between exchange/completion?
If I need to move/set up a policy now... When do I start the policy from? Given that I don't know when the exchange/completion dates are at present and won't until after the mortgage offer which requires the building insurance?
I'm sure it must be simpler than it seems in my head right now!
We just had to show our certificate of insurance to our solicitor in order to exchange. Nothing more complex than that.
And we took out a new building and contents insurance policy for the new house, and then cancelled the old insurance once when we had completed and moved out. We had two lots of insurance (one only contents because we were renting) for about 6 weeks because we were renovating.
never been asked for certificate for either exchange or mortage offer - usually just a formality. - its very easy to arrange buildings insurance if there are no complications with existing property. just phone a few days before you are due to exchange and put in place. Your solicitor should be able to indicate when are ready to exchange.
likewise for contents, you can easily buy a few days before you are due to complete.
regarding cancelling- call insurers a few days before you are due to complete, and cancel. they should refund you most of your premium but some will deduct an admin fee.
Thanks, that makes me feel a bit more at ease. I was getting worried that things were going to grind to a halt and I wouldn't get the mortgage offer and subsequent exchange/completion dates until I'd acted regarding house insurance!
Is there no way of transferring our existing home insurance? Has anyone ever done so?
Yes, you can transfer your existing home insurance, I have done this every time I've moved. Just give your insurer a call and talk through with them what you want done - they should be able to advise you on what you need to do to make sure you're covering everything you need to from the right dates.
you can transfer - but its always a good idea to check with other insurers when moving postcodes (if you are). just because they are most competitive in your area, doesnt mean they will be in others.
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