Buildings Insurance: Buying Your 3-Bed Home
A number of 3-bed home buyers overlook insurance when buying a property…
Buildings insurance is one of these…
Now, as it so happens, the vast majority of mortgage providers and companies insist on a home buyer taking out buildings insurance, even though it is not illegal to refuse to take it out.
However, this could cause huge negatives if there are issues with the 3-bed property after exchange of contracts and before you move in, especially if you are buying a flat and if your flat causes damage to someone else’s flat.
So, when is buildings insurance required?
Buildings insurance is required at the point of exchange of contracts if you are buying a freehold property.
Your buildings insurance details need to be passed onto your solicitor/ conveyancer so that they can keep the purchase process moving smoothly…
If you are buying a leasehold property then check the lease, as it will tell you whether the freeholder pays for the buildings insurance as a whole (this is then part of your service charge), or if you do need to take out your own buildings insurance for your property.
“Buildings insurance is required at the point of exchange of contracts if you are buying a freehold property.”
What does buildings insurance actually cover?
It covers aspects such as:
Fires,
Burst pipes,
Susbsidence,
Loss from theft,
Flooding…
If you have a garage, a shed (man cave?!) or another structure, then they will need to be covered via buildings insurance, too.
I would always advise 3-bed home buyers to take out buildings insurance at the point of exchange of contract.
This is regardless of whether you are going to be buying with a mortgage (and therefore you will in all likelihood be required to take out buildings insurance) or if you are buying with cash.
Have you, or someone that you know, ever overlooked aspects such as buildings insurance in the process of purchasing your next 3-bed home?