Buildings insurance for exchange

[justkeepswimming52]

Hi, wondering if anybody can advise here.

My solicitor has advised that buildings insurance on my purchase must be in place before they can exchange and to provide them with a schedule now with the aim of exchange taking place next week. However, when I've spoken to an insurer, they've said they can't insure until exchange has happened as legally there is no asset for me to insure until then. It seems like a catch 22. I'm wondering if this is across the board or just with this company. Has anybody got a recommendation for a company we can use who'd let me insure being unsure when exchange will happen?

I’ve never had to insure before exchange. Why would you? In the event of a loss, you have no liability.

It makes sense to me that the effective date should be the exchange date but solicitors say they cannot exchange without being in receipt of the evidence it is in place. We don't know when exchange will be other than sometime this week - they've said to get this ready so there is no delay.

I think we had to have insurance in place when exchanging, it was one of the documents we had to bring with us.

It was in 2018, I think it was a requirement from the mortgage lender that we had it in place already? I don't remember having any problems securing it... found the cheapest quote on confused.com or the like and phoned the company to arrange.

Have you tried a 2nd insurer?

I’m due to exchange on a house on Monday and I had to provide proof of the quote to my solicitor (the insurance company emailed it to me). Then when I actually exchange I have to call the insurance company to trigger the actual policy.

I think your solicitor is advising strangely.

You should arrange buildings insurance to commence from exchange but not before. I've never had to provide evidence of such prior to exchange.

Your mortgage company will expect buildings insurance of course.

Ask your solicitor how he expects you to proceed given what the insurance company has said.

Again , very strange.

Thanks everyone. I will contact solicitor and ask if it is sufficient to have a quote and then 'activate' it as soon as exchange has happened.

The insurance company I used is lv.com who I already have a policy on my current house with.

I think I just gave the name of the insurer to the solicitor. As exchanging can be a moveable date it's not reasonable to do it before, I always had one lined up then confirmed it in the day.

My buildings insurance is being provided by my lender, Santander, upon exchange, so I have nothing to show for it until that date arrives. I've confirmed that to my solicitor, who seems fine with it.

We are exchanging Monday, (hopefully - been trying since Wednesday 🤦) our solicitor has never mentioned this to us. We are not getting a mortgage however, might make a difference? We have insured however, took the policy out on Tuesday. I'm not sure who it is with however, my husband sorted it.

I’ve never had to provide the evidence, but I’ve always had my quotes lined up and ready, and then hit the button when the solicitors say we’re all ready to exchange and do I give my permission to go ahead. Worst that can happen is paying for insurance a couple of days too early.