Personal Guide in Insurance World
When to begin home insurance for new property?
12Mar2010 Filed under: home insurance Author: adminI’m a first time buyer and am about to pay deposit for my new home on Friday. What i don’t fully understand is when should I arrange for the home insurance on the new property to begin from? Should the cover have started on the day I pay the deposit or after?
You need to insure the building from the date of completion, as the property is legally yours from then on. If you aren’t moving in immediately there will be a few exclusions that apply due to it being an empty property, but it is still vitally important that it is insured from that day onwards. You don’t need to add the contents insurance until you actually start to move stuff in.
Don’t forget to check that your insurance policy covers goods in transit from your current policy to your new property.
Ask your mortgage lender for a quote then compare it to quotes from other insurers – it may be a lot cheaper to insure through someone else.
Best of luck in your new home.
10 Responses to “When to begin home insurance for new property?”
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Bazza
March 12th, 2010 at 12:50 pm
Normally the mortgage company arranges the house insurance and it should be effective from the completion date. Your conveyancing solicitor will confirm. I think you are entitled to arrange your own cover if you wish, but it is easier to change this at a later date.
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it's me
March 12th, 2010 at 1:04 pm
Don’t opt for your mortgage company’s buildings policy – you’ll most likely be paying top whack! The property is your responsibilty from when the contracts are exchanged, therefore, your buildings policy needs to be in place from exchange of contracts. It is down to your solicitor to ensure you have a policy in place, unless you are buying leasehold? Speak to your solicitor, they will assist you.
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Mary H
March 12th, 2010 at 1:22 pm
You really need to insure as soon as you can, to start from the day you move in, dont worry it is still possible. Good luck in your new home x.
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The Village Idiot !!
March 12th, 2010 at 1:55 pm
As Far As the Law Dictates A House Purchase Is Said To Be Concluded On The Date Of The Completion ( After Exchange Of Contracts) But The House Builder Will Tell You When They Are Insuring The Property To !! You Don’t Have to Use An Insurance Company Suggested By You Mortgage Company !! You Can Go Into The Insurance World Via ‘Go Compare’ Or Similar To Sort Out The best Deal.. Cover Everything That The House Builder’s Guarantee (10yrs) Doesn’t Cover.. But As You Are New To The System, It Might Be better, To Go To a Broker For Your 1st policy!
Or at Least For A Quote ! & Make Sure you Get Them To Explain everything To You.. Don’t Go Cheap Until You Understand the Risks…. It’s Usually Best to Insure The Contents Together With The Building!
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Cala
March 12th, 2010 at 2:15 pm
You need to insure the building from the date of completion, as the property is legally yours from then on. If you aren’t moving in immediately there will be a few exclusions that apply due to it being an empty property, but it is still vitally important that it is insured from that day onwards. You don’t need to add the contents insurance until you actually start to move stuff in.
Don’t forget to check that your insurance policy covers goods in transit from your current policy to your new property.
Ask your mortgage lender for a quote then compare it to quotes from other insurers – it may be a lot cheaper to insure through someone else.
Best of luck in your new home.
References :
Many years insurance experience.
dcispv
March 12th, 2010 at 2:51 pm
In the UK you are responsible for insuring the buildings of your property from the date you exchange contracts. This is important and your lender will want to see a copy of the buildings insurance with their name on it (as an interested party) and meeting their requirements (insuring the property for the correct amount – they have to tell you this figure it will be on the mortgage valuation that you have paid for – sometimes called reinstatement figure or rebuild cost)
Don’t be forced into taking the lenders insurance – it will usually be really expensive – I found that these guys http://www.discountlandlord.co.uk gave me a great deal on not only my landlord insurance but also my owner occupied insurance (which you need) and also more importantly they got the relevant documents down to my lender well in time for me to exchange contracts and complete smoothly – which was a great relief at a stressful time.
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http://www.discountlandlord.co.uk
MSAD
March 12th, 2010 at 3:35 pm
Go sit down with your insurance agent.
Your agent can guide you on when the policy will start. I think my policy started on the day of my closing. As of closing, you are the owner of the house.
Once you talk to your agent, you will need to give your mortgage company the insurance information (company, agents name, phone etc).
Your agent is experienced in this situation. Go sit down with him/her.
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WelshLad
March 12th, 2010 at 3:51 pm
If you are paying the deposit and singing the final paperwork Friday, then do it now to start Friday. My solicitor had to see the insurance certificate before signing.
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RichardFitzentite
March 12th, 2010 at 3:56 pm
Sometime before the fire.
Seriously though, if you have a loan the mortgage company will require it before you take possession. If no loan, then whenever you want it. I would have an agent bind coverage effective the closing date. Have your real estate agent or title company help you with this.
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Joey Mcculley
April 7th, 2010 at 11:29 am
The protection offered by building and contents insurance, can cover a expensive home and all of its contents against a huge range of risks, but if you are one of the many people struggling to afford the mortgage that comes with a new home your first home then there are various government initiatives to help, it is easy to find them.