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When to get building insurance when buying a house


Home Insurance

There is a lot to think about when you’re buying a house and though you may be focussing primarily on the sale itself, don’t forget to consider your building insurance.  Quotezone can make this job quick and simple with its independent comparison tool.

So, take the time to discover home buyer insurance to get up to speed.

Is building insurance needed before completion?

The current owner of the house you’re buying is responsible for insuring the property up until the sale is completed.  As a buyer, you need to put building insurance in place for the date you intend to exchange contracts.

Please note, your mortgage lender will probably insist that you have building insurance when buying a house to finalise the sale.

When should I apply for building insurance when buying a house?

With many insurers allowing you to apply online, it can be a pretty quick process to secure building insurance.  However, due to the importance of getting this insurance in place for the date of the exchange of contracts, you may like to plan well ahead of time and organise a start date for your policy which coincides with the exchange of contracts.  

An insurer will be more than happy to set a start date in the future if you’re trying to get all this in place weeks ahead of time.

What is homebuyers insurance?

Home buyer insurance, also known as home buyer protection insurance offers protection against legal and survey costs, and mortgage payments should a sale fall through.

Homebuyer insurance will not cover the property you are intending to buy, rather it protects you from the losses associated with a failed sale.  Though you do not have to have house buyer insurance to complete your sale, your mortgage lender will probably specify that you do need building insurance to complete the sale.

What do I need to take out building insurance when I’m buying a house?

Don’t worry about the fact that you don’t legally own the house you’re buying when you’re trying to organise building insurance.  You’ll simply need to give the insurer:

  • The address of the property you’re hoping to buy.
  • The materials used to build the property.
  • The date the property was built.
  • Safety features (such as smoke and security alarms).
Do I have to get building insurance from my mortgage provider?

No, you don’t have to.  You may have been told that you do and this is because historically you did need to obtain the building insurance from your mortgage lender.  The Office of Fair Trading decided that this wasn’t fair to consumers and so the rules changed.

Some mortgage lenders may still offer you this cover as part of a package deal but don’t assume that this will be the best option for you. Using a comparison tool may find you a cheaper building insurance quote.

Is taking out home insurance when you’re buying a house the same as taking out building insurance?

Home insurance can take several forms.  It can be building insurance, contents insurance or a combination of the two.  The combination of the two is popular once you’re living in your home but during the buying process, building insurance is all you’ll need.

If you’re ready to find your perfect building insurance, compare quotes now.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

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