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Moving home

How about if you’re thinking about moving home? In this case, you’ll need to consider your home insurance requirements.

You may not realise, for instance, that mortgage lenders insist that you have the property that you’re purchasing properly covered from the point that you exchange contracts. Yes – that’s right – you need buildings insurance in place for the day of exchange.

This comes as a surprise to some buyers, but it’s really worth remembering. It’s very likely that you’ll hold up the exchange of contracts if you don’t have the insurance in place. Your solicitor will usually request to see evidence of this insurance cover prior to setting the exchange in motion.

This can lead to a situation where two separate insurance policies are in place on the same building. That’s not a problem – in fact, it’s quite normal under such circumstances.

You may wish to speak to your existing insurance cover first if you already have cover in place on an existing policy. They may simply be able to add the new property to that existing policy for the time in between exchange and completion. Again, you’ll find that insurers are used to doing this. You’ll have to pay a little extra, but it could work out to be the cheapest option overall.

Remember, when taking out insurance on a property that you’re not yet residing in, that you will still need to answer all of the questions that you did when taking out insurance on your current home. So that means that you’re going to need to provide suitable answers about the age of the property, the cost of rebuilding, whether it’s a detached house and all the other questions that you’ll probably be familiar with.

If the property that you’re buying is your first home then you won’t have the advantage of an existing no claims discount. But you will, however, still need to remember that you need to have that buildings insurance in place from the moment that contracts are exchanged (in fact – just before, in order to satisfy those carrying out your conveyancing).

This assumes, of course, that you require a mortgage in order to proceed with the purchase. You may not be in such a position, but it still would be wise to put suitable insurance in place.

How about if you’re simply selling up? Most people actually tend to keep their insurance in place until they actually leave the property, although the reality should be that your home will actually be insured (by the purchaser) from that point when you exchange contracts. If in doubt with any such issues, you can always speak to your solicitor for definitive advice.

Home Insurance

Our complete guide to home insurance aims to give you the lowdown on your buildings and contents insurance options. Check out the complete list of articles:

Contents insurance
Comparing contents insurance
Buildings insurance explained
Buildings insurance risks
Buildings insurance cover
Buildings insurance: rebuilding costs
Buying buildings insurance online
Buildings insurance: moving home