is it true that it's buyer's duty to insure the property on exchange, not completion? seems unfair.

[likeatonneofbricks]

my solicitor seems to suggest this, but why would you insure and be responsible while the vendors still live there (albeit only up to two weeks) until completion? if there is any damage to ,say, windows or appliances included in sale, wouldn't they still be responsible? That would seem to be fair to me! I'm talking about inside of the flat and contents including fire/flood, as the building itself is covered by communal insurance. I assume in this case you are not automatically insured against flood/fire? even if so, there are other things that can get damaged. grateful for answers!

It's not so much that you are responsible for the damage. It's more that, from exchange, you are legally bound to buy the property whatever state it is in, so it's in your interests to have insurance in place.

Yes of course the vendors ought to have insurance up to completion, and yes of course if something went wrong between exch and completion they ought in theory to make a claim on their insurance to get it repaired, but you as seller can't force them to do so. So that's why you get your own insurance.

If it's a flat then the position is rather different because, as you say, the building itself will be covered by communal insurance. And contents insurance is mostly unnecessary because your belongings won't be in there till completion. However things like fitted carpets are counted as contents so you might want contents insurance from exchange to cover those. Or you could decide not to bother.

Not really sure what the big deal is though - what's the problem with starting your insurance 2 weeks early?

I would go back to your solicitor as I've never had to do this when buying a flat (on the basis that buildings insurance is for the whole building), only for a house.

well it's also appliances and windows etc, and (unlikely) fire/flood. It's just that I'm not there and the vendors can theoretically trash the place, even when moving - seems extremely unfair if I had to make a claim (ins companies don't like that, and I might need to claim again same year) or - as I'm paying near asking price - have to repair anything that's not adequately covered as personally I wouldn't know how much all new crapets would be etc.. Of course I hope that vendors aer decent people, but what about buyers who buy from 'bad' vendors? it's strange. I suppose it's ok to just insure parts but extra faff to then be adding things soon after. I thought you are not obliged to buy after exchange, but you would lose deposit.

Tbh they can trash the place whether you buy insurance or not. Not buying insurance won't protect you from that... and buying insurance won't help you either as insurance won't cover deliberate trashing, it's really there for accidents and acts of god.

However I think there is usually some sort of clause in the sale contract about the vendors taking reasonable care of the place till exchange, so if they do trash it you have that as comeback.

No you are obliged to buy after exchange.

Check your current home insurance policy. A lot have a clause that covers this IIRC

Maybe your Solicitor is suggesting insurance in case the present vendors aren't insured at all, at least if something did happen the your insurance is in place.

Hello likeatonne..... how's things going?

What OlympicEater said. Your current home insurance may have a period (ours is 90 days) which covers the new home from exchange to completion.

interesting! I didn't know about that cover in existing ins - must check! thanks for that.

Allotment - nice to see you in property section! (unusual) All is now resting on our March project that thankfully is on, will update. So far just have to wait.

mini - so say if people go bankrupt or smth how would they be obliged to buy? when I was selling I remember being told that if they don't complete I'll keep the deposit. You could possibly go to court, but who would want to waste the money - much easier to keep deposit and put the place back on the market!

Yes this is true. We found this out when we purchased our current house a we exchanged about a month before completion and we had to insure the house in case anything happened.

I'm property bonkers likeatonne..... always on Rightmove, always looking to renovate a house all over again in spite of being on the 4th year with this one . Have been to this section once or twice and even posted about the house somewhere recently

Yes

likeatonne you're right, most people wouldn't bother to take it to court. But legally the buyer is obliged to complete whether they are able to or not.

thank you everyone for the replies. at least no horror stories so far re finding the place in a trashed different state from since the viewings!

Allotment - oh yes, property is very addictive. If I buy this place i will have serious withdrawal symptoms re Righmove etc. as I've looked nearly every day for 6 months for viewings! well, at least now I can switch to MN property with the questions

It's so silly - I remember after exchanging I got my insurance from the same bank as my mortgage is with, and said 'As I haven't moved yet, please send the documents to my current address'. Week later, no sign of insurance documents. Rang the bank...of course they had sent the documents to the new address.

I said to them 'Surely you deal with this issue all the time, everyone has to get insurance after they've exchanged contracts but before they've moved...why is this so hard for you to understand??' and was met with blank looks all round

Some mortgage lenders will cover your house from exchange to completion. It may be worth checking if yours does this.

Our mortgage agreement stated that we had to have insurance from Exchange. Mortgage was payable from that date, so insurance needed to be too.