When Should You Arrange Home Insurance When Buying a Property? 🏡🔑
When you’re buying a home, there are lots of exciting milestones along the way – from having your offer accepted to finally getting the keys. However, one step that can sometimes catch buyers by surprise is arranging buildings insurance before exchanging contracts.
Many buyers assume insurance only needs to start once they move in, but in most cases it actually needs to be in place before contracts are exchanged.
If you’re preparing to buy a property, here’s what you need to know about buildings and contents insurance, when to arrange it, and why it’s so important.
Why Buildings Insurance Is Needed Before Exchange⁉️
When purchasing a property in England and Wales, the legal responsibility for the property can transfer to the buyer from the moment contracts are exchanged, even though completion – when you actually move in – may still be a few days or weeks away.
This means that if something unexpected happened to the property between exchange and completion, the buyer could still be legally obliged to complete the purchase.
For example, the property could suffer damage from:
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Fire
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Flooding
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Storm damage
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Structural incidents
Although these situations are rare, they can be costly if they do occur. Buildings insurance protects you financially during this period, ensuring the property is covered from the moment you become responsible for it.
Mortgage lenders will usually also require buildings insurance to be in place before exchange as part of the mortgage conditions.
What Buildings Insurance Covers🏠
Buildings insurance covers the structure of the property itself, rather than the belongings inside it.
This typically includes:
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The roof, walls and floors
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Windows and doors
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Permanent fixtures such as kitchens and bathrooms
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Pipes, drains and electrical wiring
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Garages, outbuildings and fences
When arranging cover, insurers will usually base the policy on the rebuild cost of the property, rather than the purchase price. This figure is often included in your survey or mortgage valuation.
When Should You Arrange Contents Insurance?🛋️
Contents insurance protects the items inside the home – your furniture, belongings and personal possessions.
Most buyers choose to start their contents insurance from the day they move in, when their belongings arrive at the property.
Typical contents cover includes:
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Furniture and furnishings
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TVs and electronics
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Clothing and personal items
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Jewellery and valuables
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Household appliances
Many insurers offer combined buildings and contents policies, which can be a simple way to ensure everything is covered.
What Happens If Insurance Isn’t In Place?🏚️
While property transactions normally proceed smoothly, failing to arrange buildings insurance before exchange can expose buyers to unnecessary risk.
If the property were damaged between exchange and completion and no insurance was in place, the buyer could still be required to:
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Complete the purchase of the property
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Pay for repairs themselves
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Manage delays or complications in the transaction
Having the correct insurance arranged at the right time helps avoid these situations and provides peace of mind during the final stages of the purchase.
A Simple Tip for Buyers✅
Once your purchase is progressing well and exchange of contracts is approaching, it’s a good idea to start gathering insurance quotes.
Most insurers allow you to arrange cover in advance and simply set the policy start date as the day contracts are exchanged.
Your solicitor will confirm the exchange date, giving you time to ensure everything is in place before the transaction becomes legally binding.
Buying a Home? We’re Here to Help💗
Buying a property involves many moving parts, and it’s completely normal to have questions along the way. At Edwards & Gray, we’re always happy to guide buyers through the process and help make each step feel clear and straightforward.
If you’re currently looking for a home or preparing to move, feel free to explore our latest properties or speak to our team for advice.
