We’re about to exchange on the sale of our current place and purchase of a new one, and our solicitor has advised that it would be a good idea to take out buildings insurance on the new property from the date we exchange, but also continue the insurance on the place we’re selling in case either end of the chain is uninsured and one of the properties burns down.

The first question is will we be able to transfer our existing buildings and contents policy to the new property when we move, or will we have to take out new cover?

The second question is whether there is such a thing as a short-term buildings cover policy – I think it will be about 3 weeks between exchanging and moving in, so probably outside the free cancellation period. Or would we be better off just taking out a normal 1-year policy and cancelling when we move?

Any helpful comments much appreciated!

Sounds strange.

You should simply be transferring your existing policy from the date you move (suggest you ask your provider to give cover at both locations on moving day to be safe).

In theory, the contract of sale you will be ‘exchanging’ should identify that the vendor must maintain insurance cover on the building concerned and a copy of the policy lodged with solicitors. That policy will have a standard clause in it known as the “contracting purchaser’s interest clause” which protects your interests in the property between exchange and completion (& sometimes beyond).

You could arrange cover in your own name if you want & the most cost-effective way of doing this is likely to be asking your existing insurers to add the propety to the current policy.

It’s been a while since I moved so things may have changed.

We’re in a similar situation. Check with your current insurer. You will be able to transfer your insurance, providing the company will insure it (i.e. they’re happy with any flood or subsidence risk etc). With M&S (our insurer) there’s 60 days overlap for contents and 30 days overlap for buildings cover. Your insurer of course may treat things differently.

The reason behind this is that people may complete on one property while still owning the other- either they’re waiting for completion, or they’ve not even sold it yet.

Now if someone can point me in the direction of a buildings insurer to cover at a reasonable price an empty house being renovated…

Nobby +1

Thats not right. If the building burns down after exchange but before completion you will not be able to complete. It will be the vendors responsibility not yours.

Also you can’t double insure a building. I tried to insure the house I brought after exchange and they said I couldn’t as it was already insured. Its fraud to double insure.
Check you current policy – you may find your already covered for all this anyway.

Our solicitor required proof of buildings insurance before we could exchange, this was a requirement of the lender.

From what I’ve read, once contracts are exchanged you are required to complete irrespective of whether the building burns down in the meantime hence the requirement to insure from exchange.

Thanks for all the help – I hoped the hive mind would come up with something useful!

Our solicitor agrees with ebygomm about having to complete even if the house has become a burnt-out shell; we’re with M and S at the moment, so I’ll talk to them and hope they’re as helpful as they have been for vinnyeh…

Thanks again!

Not had buildings insurance with M&S but I had no problems with them covering our contents on two properties under the one policy when we were moving. We were unlucky enough to have to make a claim – my keys got stolen with my car, and they covered the replacement locks on both properties without hesitation.

Now if someone can point me in the direction of a buildings insurer to cover at a reasonable price an empty house being renovated…

Have you tried DMS?