Purchasing a property can be a busy, stressful time and it can seem like there are a million things to remember. Some things however, are more important to remember than others – for example, getting the right insurance in place at the right time.
Many people believe that they only need to take out buildings insurance once they move into their new home. However, this is not the case. It can come as a surprise to find out that, in most cases, the responsibility for insuring the property becomes the buyer’s as soon as contracts are exchanged.
Avoid stress, get prepared
Exchange – Once contracts have been exchanged, you’re committed to the purchase and can’t back out without forfeiting your deposit.
Insure – If the property is damaged or destroyed between exchange and completion, you’re still contractually bound to complete the purchase and will immediately face hefty costs to repair your brand-new home.
Relax – To avoid stress and guarantee peace of mind, researching your options in advance and taking out insurance on the day contracts are exchanged is very important.
Getting the right policy
Buildings insurance covers the cost of repairing or rebuilding your property in the event of damage. It covers the structure of the property, as well as outbuildings such as garages and sheds and fences, and external items such as pipes, cables and drains. It doesn’t cover possessions and furniture inside your home – you will need a separate contents insurance policy for this.
How much you pay for buildings insurance will depend on the rebuild value of your new home. This should not be confused with the property’s current asking price. It is how much it would cost to completely rebuild your home from scratch. There are tools available to help you calculate the rebuild value of your home, including a special calculator on the Association of British Insurers’ website.
Here to help
We can help you find the most suitable buildings insurance policy for your circumstances, giving you one less thing to worry about. We can also advise on any additional cover you may need and get everything in place by the time you exchange. Please contact us.
As with all insurance policies, conditions and exclusions will apply