I'm exchanging and completing 3 months apart. I'm keeping my current place to rent out and moving into a new place to live.
I understand I'll need to insure the new place from exchange date (just buildings insurance), no problem.
I also understand I need to insure my current place (buildings - I'm ignoring contents for now) the whole time. When tenants move in I'll need to provide insurance which covers for tenants living there. All fine- I have quotes etc etc.
My question is: what happens for buildings insurance in the 3 month gap for my current place? I can't start the landlords insurance since the tenants don't move in yet. But my LTB mortgage needs suitable insurance- do I just continue with my current owner-inhabited insurance until the tenants actually move in? I'm a bit lost about whether my insurance needs to reflect the terms of the mortgage, ie provision for tenants.
I'm taking the LTB money at exchange so it's appropriate cover for the mortgage I need to be sure I have.
Advice from anyone who knows the rules re this much appreciated! Thanks
You insure the house you are living in exactly as you have done so far. You insure the buildings only of the house you have exchanged on from exchange. Then once you have completed you make the changes necessary.
We went with our mortgage company's insurance for the new place from exchange. Once we completed, we cancelled the buildings and contents insurance on the old place and took out a new policy with a new provider for the new house as it was cheaper. Our old insurers did not charge a penalty for cancelling - worth checking whether there is one with your insurers as you will be changing to a LL buildings policy on the house you let.