ChatterBank2 mins ago
Insurance between exchange and completion
I am advised that my solicitor will not exchange contracts until I (the buyer) have buildings insurance in place in case the property burns down between then and completion. While I would have thought that I was contracting to buy a house in a non burned state and if it did burn down I it would be the sellers problem to fix it, I'm not going to get anywhere without buying the insurance,which will in any case continue once completion has taken place.
However I could arrange the insurance on day1 in anticipation of exchange taking place a week later and then the whole thing could fall through. Would I get my money back in full or would I suffer a huge "admin" fee ? This falling through must, sadly, be quite common and with all the cash already shelled out on surveys, searchs etc I wouldn't want to lose even more. Naturally I hope all goes well but I'd like to know where I stand just in case it doesn't.
Thanks
However I could arrange the insurance on day1 in anticipation of exchange taking place a week later and then the whole thing could fall through. Would I get my money back in full or would I suffer a huge "admin" fee ? This falling through must, sadly, be quite common and with all the cash already shelled out on surveys, searchs etc I wouldn't want to lose even more. Naturally I hope all goes well but I'd like to know where I stand just in case it doesn't.
Thanks
Answers
Best Answer
No best answer has yet been selected by bamberger. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I understand Red's point about insuring something you don't own.......... in fact, by exchanging contracts, you kind of DO own it........... or, actually you've contracted to buy it come what may........ including burning down.
I've done this loads of times in my job.
Perhaps re-assuring when you really don't know FOR SURE if the present holder does have insurance. He might think he's off the hook after exchange.
I'm sorry I'm not really helping with the answer you want. This is why I've always used a Broker. They figure the best deal for you......... and arrange short term cover when needed.
I've done this loads of times in my job.
Perhaps re-assuring when you really don't know FOR SURE if the present holder does have insurance. He might think he's off the hook after exchange.
I'm sorry I'm not really helping with the answer you want. This is why I've always used a Broker. They figure the best deal for you......... and arrange short term cover when needed.
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