Short term buildings insurance between exchange and completion

Advice for property buyers – when to arrange cover for your new home

As soon as you have decided to buy a property, whilst your solicitor is proceeding with searches in preparation to exchange contracts on your behalf, you should identify a suitable insurance policy and obtain a quotation, so you are in a position to place the buildings on risk as soon as contracts are exchanged. However, as exchange of contracts is often delayed by any number of reasons, particularly if the purchase is part of a chain, it is best to commit to your insurance purchase only once you are sure the exchange of contracts is imminent.

We speak on a daily basis to customers who have been told by their solicitors to cover the property immediately, as contracts have already been exchanged. Unfortunately, this is the time many home buyers learn that it is more difficult to obtain insurance cover prior to completion than they thought.  Having had their current company, or even a list of other insurers decline to provide cover before completion, they then realise they need more specialist insurance advice. 
The number of customers seeking this cover inspired us to create a specialist short term insurance product designed to provide insurance cover for the period prior to completion, leaving the buyer free to choose a suitable annual solution for buildings and contents insurance from the completion, or moving in date.

For a more in-depth understanding of the reasons you need to arrange insurance before you have even completed on the purchase of a property, you might like to read our more detailed article.