If you are moving home, there are a lot of things to think about, from arranging removals to packing up your stuff and advising your gas, electricity and mobile providers that you are moving home … and that is just the tip of the iceberg.
Another really important thing on your “moving” list is that of home insurance.
Exchanging = the need for buildings insurance on your new property
The first thing you need to know is that as soon as you exchange contracts (which is typically a week, 2 weeks or a month before completion – the day you actually get the keys), you need to have your own buildings insurance in place on your new property in order to protect your financial interest in it.
Why is this?
Imagine you exchange contracts on your dream home but in between the exchange date and the completion date, something happens to the house. Maybe a fire razes it to the ground, or the property suffers from severe flood damage which makes it uninhabitable?
At this stage, once you exchange, you and the seller (the vendor) are legally obliged to proceed to completion – no matter what the state of the property. Of course, you could pull out after exchange, but you will typically lose any deposit you have paid – and the vendor may try and pursue you for other costs too.
This is why buildings insurance is so important as soon as you exchange. It protects you financially against what may happen before you complete – and thereafter.
Speak to your current insurance provider
Before you start shopping around for an additional home insurance policy (as you will still need to keep your current property insured of course until you complete), speak to your current home buildings insurance provider to see how they can help.