Building insurance

[Shaytoon]

So we're about to exchange on our first home (finally!!) And I think we need buildings insurance in place first.

I literally have no idea where to start, it just seems so complicated.

Any tips or advice?

You definitely do require buildings insurance from the point of exchange. If something were to happen to the property between exchange and completion you're still legally obligated to complete the contract on the appointed completion day. The vendors will keep their insurance in place until exchange, so effectively the property is doubly insured for the period between exchange and completion.

Starting here isn't a bad idea:

www.moneysupermarket.com/home-insurance/buildings-insurance/

You do need buildings insurance from date of exchange.

I worked in buildings insurance for a lot of years, I would pay the extra for accidental damage cover. It’s usually pennies but covers you for damage if your roof leaks, if you spill paint on the carpet etc. We went with Legal and General, but I agree comparison sites are a good place to start.

Amazing, thank you.
Any recommendations on excess and things?

Do people normally underestimate the cost of their contents?
My first guess was about £8k - laptops, TVs couch, beds
But then realised actually there's so much in my house I don't even think about!

8k is nowhere near enough contents. Mine is 50k. Most people say if you could pick up your house and shake it what would fall out would be contents.

Best bit of advice I would give is go with the same insurer. It was a life saver when my Aunt's house caught fire.

We normally insure contents for about £50-£60k. I use price comparison sites for companies. Think this year we're with Hastings Direct

My neighbour brought his house outright and he told me he has no house insurance, I told him your playing a dangerous game not having any insurance.

Most companies have calculators to help you add up how much cover you need, remember when working out the value of the house to rebuild, it's not how much the house is worth but how much it would cost to literally rebuild it which would obviously be much less generally.

People massively underestimate the value of their contents. If you make a claim and the assessor determines that you've under-insured, your claim will be reduced by the % of under-insurance. The safest thing to do is go for a policy with unlimited value of contents.

Likewise with the buildings insurance. Your survey should tell you the cost of rebuilding which is the amount you should insure it for and you need to make sure you increase the figure each year by inflation.

It’s an awful lot better to be over-insured than under-insured.

I would be surprised if the premium was hugely different for £8k contents than £50k.

It is likely, though not always the case, that the re-build figure stated is quite a bit less than the purchase price. The land retains a value irrespective of whether there’s a house built on it!