Between exchange and completion on a house, who is responsible for insuring the property?

Question

Two solicitors have given me conflicting advice on who's responsibility it is to insure the home I am about to buy. One states I should insure it after exchange of contracts, and one says insuring the property before completion is the sellers' responsibility. Who is right?? (Informed opinions only please, this could cost me my house!!)

Answer 1

As soon as the exchange has taken place the title of ownership has now begun to change hands! Insurance should be put in place to cover the property from the day of contract exchange! Completion is only the hand over day when all paper work has been listed / filed.
Solicitors can never seem to agree on this for some reason?! Always cover your own back & for the cost of a months insurance why dont both parties agree to cover the property for this small period of time (£20 max) then your both safe!!

Also hand over of keys, exchange & completion can happen on the same day - so why not think about that??

Answer 2

You do not own the property until completion of the contract when the title transfers to you. Only at this point are you in a position to insure a property. Before this time you do not have ownership and cannot suffer a loss if anything happens to the property.

A competent solicitor will ensure that the property is insured by the seller between exchange and completion so if the property falls down after exchange your deposit will be covered.

No insurance company will allow third party insurance on something they have no interest in (try insuring a car that you don't own!)

Answer 3

Once exchange has occurred you are commited to buy. It may be the sellers responsibility to insure against damage, but do you want to rely on them to do that?

A month's extra insurance will cost what, 20-30 quid or so?. I'd get it regardless just for peace-of-mind

Answer 4

I concur with Grantius

Answer 5

I couldn't agree more with David.