The home buying journey is exciting as you check listings, visit properties, compare them, and find a dream property. But it is easy to miss out on fine details like building insurance when handling the other aspects. While it does not seem as important as checking the layout and screening the paperwork, there is much more to consider. The implications can be far-reaching because buying a property without insurance is risky. You must pay close attention to it before sealing the deal. Here are some facts every home buyer must know about building insurance.
Understand the coverage
Essentially, building insurance covers structural damage of a property. Besides the main building, it may also cover outdoor structures such as gates, fences, sheds, and greenhouses. Further, coverage may include fixtures like doors, windows, fitted kitchens, and bathroom suites. The damage may be caused by fire, theft, vandalism, frozen pipes, and more. The coverage offered by building insurance depends on the policy. So a buyer must go through the nitty-gritty to know what is covered.
Insurance and the buyer’s responsibility
The period between the exchange and completion of a property deal is the grey area in the insurance context. As a buyer, you cannot expect the seller’s insurance to cover you after the exchange of contracts. It makes sense to ensure that the property has buildings insurance at the point of exchange. The agreement becomes legally binding at this point, so the responsibility passes on to the buyer. Mostly, there is a gap of a couple of weeks between the exchange and completion. You must seek advice from a conveyancing solicitor to cut the risk.
Coverage is essential
Coverage is essential for any property buyer because they are responsible for it from the moment the contracts get exchanged. Getting a conveyancing solicitor on board empowers you with the best advice. You can get a quote from conveyancing solicitor before starting the process so that they can guide you about insurance. Besides protecting against mishaps, coverage is a vital element of the mortgage process. Your lender will require it as a condition for approval. Insurance protects the lender’s equity if a mishap occurs between exchange and completion.
Buying an off-plan property
If you buy a new build-off-plan property, contracts are exchanged before the home is even built. In this case, the period between exchange and completion can extend to months or even years. The seller is responsible for building insurance until it gets completed. The best way to ensure this is by having the contract examined by a conveyancing solicitor. Experts can verify facts and make sure that the liability is not yours as a buyer. So you can rely on them for safeguarding your rights and preventing the unnecessary burden.
The issue of building insurance is a complex one for any home buyer. But you need not worry about it if you have a seasoned conveyancing expert handling the process for you. They make sure you pick the responsibility only at the right time. You can also seek their guidance to get a suitable policy.
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