When buying a property we highly recommend that an insurance health check is undertaken before you commit yourself financially.
Before you buy
Buying a property is so often shrouded in secrecy, but advising your insurance broker in good time prior to Exchange of Contracts should form part of your pre-purchase check list before you are committed.
Insurance generally sits at the bottom of the pile of things to do, so much so, how often do you only concern yourself with it when you have Exchanged Contracts or at Completion. Wouldn’t you rather know in advance if your property is going to be difficult to insure which could create issues with your lenders and/or your tenants as:
- You may be buying a property from a substantially larger property owner than yourself, who may be able to negotiate highly competitive premium levels due to their bulk buying ability on their block insurance policy.
- Certain types of construction, poorly maintained properties, some occupations, bad claims experience, vacant properties and the location can all play a part in making your property unattractive and in the worst cases, virtually uninsurable to insurers.
When you Exchange Contracts
As soon as you Exchange Contracts you immediately have a financial interest in the property, therefore it is important to make sure your valuable asset is insured to your satisfaction. Don’t forget, if there is a significant insurance claim between Exchange and Completion, the last thing you need are issues with the cover arranged. obtain details of the Vendor’s insurance arrangements prior to Exchange so you can ultimately satisfy yourself that they are adequate at the very least.
You should always:
- ask for confirmation the Vendor has paid their last renewal premium
- request that your interest as Contracting Purchasers is noted on the Vendor’s policy between Exchange and Completion
- request a 3 year claims experience detailing those paid and outstanding
All clients of Aquilla benefit from a free and discrete review of the Vendors insurances and will identify matters which could be of concern and may require immediate attention.