Two lots of home insurance?

[mnahmnah]

Hi

Due to be moving house in to en next few weeks. My mortgage advisor says I need to have buildings and contents insurance for the new house before exchange can happen.

Is that right? I can’t remember having to do that on previous house moves. Am I paying two lots of house insurance, one for current house and one for new house, until we move?!

This is normal. Just set your new mortgage start date to be the date of completion, and send them the proof you’ve done so. You don’t have to start paying it before then.

You need to ensure the new house as soon as you have exchanged.

You are responsible for the house between exchange completion if they don't happen on the same day.

I understand I need it on exchange, which can be weeks before completion. I just can’t remember paying for two lots of house insurance at the same time previously. So the monthly payments for the new house insurance won’t start until we complete and move in? I just have to pay the deposit to secure it?

Why is the OP responsible for a house she doesn't own? The seller could pull out before completion and she could never own it

after exchange you’re legally required to go ahead with the transaction, if the house burns down in that interval it’s in your interest to have it insured so you’re protected from having to buy an expensive bit of charcoal for the cost of a house.

Speak to your current insurer - they may extend cover to the new house for a period of time. Otherwise if you just take a new policy you might get stung with a cancellation fee on the old policy.

Helpful! Thanks. Our current one is renewing next week so I will phone them

I thought it was only buildings insurance not contents. ? But basically if either your house or your seller's house burn down or collapse between exchange and completion, you'd likely be totally screwed.
The sellers, technically they have to offer it in the same state as at exchange, but if they are unable to afford to rebuild the house, it doesn't help you much, you won't be able to compete (after all the mortgage company wouldn't release the funds if they know). And the house you own already, you'd have to rebuild it for your buyers as it was at exchange, or go bankrupt if you can't.
So you've basically covered all your interests if you insure both.

Yes, but what if the seller didn't pull out and the house burnt down? What would the OP do? If she pulled out, then she has all sorts pf legal obligations as she has already exchanged.

@INeedAnotherName

That’s what I find confusing too!

But mainly I have never had to do this in my previous house moves

You are legally responsible for that building at exchange so a mortgage provider will require you to have buildings insurance from this point. You don't need contents insurance though.
What you usually do is get a quote, ready to activate upon exchange.

Slight correction to the above. Once you’ve exchanged you are bound to complete the purchase even if the house burns down during that time - so you need to insure it from the date of exchange.

It’s always been the case so I don’t know why you didn’t do it on a previous purchase.