Buildings Insurance

For Property Sellers

If you're selling a property, it's crucial to maintain your buildings insurance coverage until the completion of the sale. Here's why:

Legal responsibility: You remain legally responsible for the property until completion.
Mortgage requirement: If you have a mortgage, your lender will require continued insurance coverage.
Protection against unforeseen events: Accidents or damage can occur between exchange and completion.

Key considerations for sellers:

Inform your insurer about the pending sale
Consider adjusting your policy if the property will be vacant before completion
Don't cancel your insurance until after completion is confirmed

For Property Buyers

As a buyer, you need to arrange buildings insurance from the moment contracts are exchanged. Here's why this timing is critical:

Legal obligation: You become responsible for the property at exchange, not completion.
Mortgage condition: Most mortgage lenders require insurance to be in place at exchange.
Financial protection: Insurance safeguards your investment if something happens to the property before you move in.

Important steps for buyers:

Start researching insurance options early in the conveyancing process
Ensure your policy begins on the day of exchange
Confirm the level of coverage meets your mortgage lender's requirements

The Gap Between Exchange and Completion

The period between exchange and completion is a critical time for insurance:

This gap can be a few days to several weeks
Both buyer and seller should have active insurance policies during this time
This "double coverage" ensures continuous protection of the property

Types of Coverage to Consider

While buildings insurance is essential, consider these additional coverages:

Contents insurance: Protects your personal belongings
Unoccupied property insurance: If the property will be empty for an extended period
Home emergency cover: For immediate assistance with issues like plumbing emergencies

Our Role as Your Conveyancer

As part of our conveyancing service, we will:

Advise you on the appropriate timing for arranging or maintaining insurance
Liaise with your mortgage lender regarding insurance requirements
Ensure all necessary insurance documentation is in place for a smooth transaction

Remember, while we provide guidance on insurance timing, we recommend consulting with an insurance professional for specific coverage advice tailored to your needs.

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