At a glance
In a hurry? Here’s what you need to know about buildings insurance between exchange and completion:
Once contracts have been exchanged, the buyer is responsible for any damage caused to their new home in the period before completion.
You should arrange for your buildings insurance to start on the day you exchange contracts.
Having buildings insurance in place is normally a condition of your mortgage offer and may be a condition of the house sale.
You can take out a brand-new policy, transfer your existing policy over (if allowed by the insurer), or arrange a specialist policy to cover you temporarily (sorry – Compare the Market doesn't compare temporary buildings insurance).
Be upfront with your provider about the expected date of completion, who’ll be living there until then, when you’ll move in and any planned renovations or building work.
I’m buying a house, when do I need to have buildings insurance in place?
The house you’re buying becomes your legal responsibility as soon as you exchange contracts with the seller.
That means you should arrange for your buildings insurance policy to start from this date.
Your mortgage provider will normally insist on this, too. Having buildings insurance that covers the full mortgage amount will typically be a condition of your mortgage agreement.
Can I wait until I move in to buy buildings insurance?
It’s not advisable to wait until then. If the house burns down or is flooded between exchanging contracts and your moving date, you’re still committed to buying it.
Getting buildings insurance from the moment you exchange contracts should provide you with the cover you need.
Do I need temporary home insurance between exchange and completion?
To protect your investment, you need insurance – but whether you opt for a short-term, temporary policy that just covers you between exchange and completion or start your buildings insurance policy from the exchange date is up to you.
Just so you know, Compare the Market doesn't compare temporary policies – but you can compare regular buildings insurance with us
A temporary policy can have some advantages. It could make it easier to have a combined buildings and contents policy starting on the same date.
You might also avoid the issue of altering your home insurance policy to include contents on completion – or paying for contents insurance that’s not needed.
If you opt for a standard policy, you’ll need to make it clear to the provider that you’re not yet living in the property.
You should tell the insurance provider whether the property is vacant or still occupied by the seller, plus the planned completion date.
Is buildings insurance a legal requirement?
You’re not legally required to have buildings insurance. But your mortgage provider will usually insist that you have it and it may be one of the conditions of sale in the exchange contract.
You don’t have to buy your buildings insurance from your mortgage provider, though. You should choose the policy that suits your needs best.
If you don’t have a mortgage, there’s no obligation for you to have buildings insurance. But unless you can comfortably cover the cost of rebuilding your house or repairing it if it’s damaged, it should be seen as an essential.
Your solicitor may ask you for proof that the property is insured. This is because the standard conveyancing wording recommended by the Law Society, in the Standard Conditions of Sale (5th edition), puts the responsibility of arranging buildings insurance between exchange and completion of contracts on the purchaser of the property.
Do I need buildings insurance if I’m a leaseholder? Or is this the freeholder’s responsibility?
It depends on your lease. Some freeholders buy buildings insurance for the whole property and have leaseholders pay their share through the service charge. But this isn’t always the case, so check your lease.
If in doubt, ask the freeholder via email so you have a written record. Do this early enough so that you can get insurance in place for when you exchange, if needed.
To find out more about the responsibilities of home ownership, read our guide to the differences between leasehold and freehold.
Do I need buildings insurance for a new build?
If you’re buying off-plan or a new-build property, then your home will typically come with a warranty. But you’ll still need buildings insurance.
While the warranty can pay for repairs to defects and structural issues for a specified number of years, it won’t provide the same protection as buildings insurance. For example, it won’t cover you for damage caused by fire and flood.
Buildings insurance will need to be in place when you exchange contracts.
Find out more about new-build home insurance.
What does buildings insurance cover?
Buildings insurance should cover:
Your home’s structure (walls, windows and roof)
Outside fixtures (fences, sheds and garages)
Permanent fixtures and fittings (including the bathroom suite and kitchen units).
Policies should provide insurance against:
Fire, floods, storms
Vandalism
Frozen or burst pipes
Subsidence and/or heave
Fallen trees or lamp posts.
What won’t buildings insurance cover?
Buildings insurance typically won’t cover you for:
Damage caused by wear and tear
Damage caused by poor maintenance or bad DIY
Damage caused by frost (other than damage caused by a burst pipe)
Damage caused by some pests and birds
Homes that are left unoccupied for a long period (often 30 or 60 days)
Damage that is over the cover limits of the policy.
When should I start looking for homeowner’s insurance?
To avoid the stress of searching for insurance on the day of exchange, it’s better to arrange buildings insurance in advance.
You can normally choose the date when the policy will start. So, once you find out when you're exchanging contracts, you can arrange for cover to begin that day.
Ideally, give yourself time to do your research so you can compare quotes. That way, you can make sure you find the right level of cover for your new home, at the right price.
How to arrange buildings insurance before exchange
Make sure you have the details of the home you’re buying to hand, including:
The number of bedrooms and bathrooms
If it’s made from standard materials such as brick and tiles or is non-standard
If the property has suffered from cracks, subsidence or ground movement
If the property is close to tall trees or water
If it has been flooded
If any building work is taking place.
We can help you with a quote for home insurance, but you might also want to look at specialist policies to compare your options.
In this situation, it’s important to speak to your insurance provider directly to make sure they understand the situation and you have the cover you need.
What if the insurance provider asks questions I can’t answer?
You should be able to answer many of your insurance provider’s questions by looking at your house survey. If you’re unsure, your solicitor or conveyancer may be able to help.
If the insurance provider asks about details that you’re not sure of – such as what locks and security measures your new home has – you could ask the estate agent to check with the seller.
Be honest with your provider if there’s something you’re not sure of. Don’t guess, as this could invalidate your policy when you come to claim if the information is inaccurate.
What should I consider when buying buildings insurance?
When looking for buildings insurance, consider:
The excess – the amount you have to pay towards any claim you make
If you’re not moving in straight away because you’re having building work done, tell your insurance provider in advance about the planned work
Whether the policy covers you for alternative accommodation, should you need to stay somewhere else if your home is damaged by fire or flood, for example
If the policy provides cover for tracing and accessing a leak and for clearing blockages in sewage pipes
If you’re thinking of renovating your new house – or adding an extension or loft conversion – don’t forget to review your buildings insurance afterwards, as the rebuild cost of your home will probably increase.
You might also want to consider extras like cover for:
How much should I insure my new home for?
Your buildings insurance needs to cover the cost of rebuilding your home, not its market value. For more information, read our guide on how to calculate the rebuild cost of your home.
If you’ve just bought your home, the rebuild cost should be detailed on your mortgage valuation report.
Or when you have your house survey done, you can ask your chartered surveyor to carry out a rebuild estimate at the same time.
If there is property damage between exchange and completion, who is liable for repairs?
If the property sustains any damage after you’ve exchanged contracts, it’s normally your responsibility as the buyer to carry out any necessary repairs.
Damage could vary from a broken window or the fence blowing down, to a burst pipe and flooding.
That’s why it’s so important to make sure you’re properly insured.
Can I transfer my existing home insurance policy?
You’ll need to talk to your existing provider to see if it is happy to do this. You might need both properties insured for a period.
Your premium will almost certainly change if you transfer your policy. Your new home’s location, size and rebuild cost will impact the price.
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FAQs
What happens if the seller removes fixtures and fittings?
If you find something’s been removed that shouldn’t have been, contact your solicitor. The seller is legally bound to leave all fixtures plus any fittings they agreed would be included in the sale, such as curtains or carpets.
How does it affect my home insurance if I’m not ready to move into my new home?
If you’re not planning on moving straight into your new home on completion, you should let your insurance provider know.
Your buildings insurance should cover your home to be left empty for a specified amount of time. However, if it’s going to be longer than your policy allows, perhaps because you’re planning renovation work, then you’ll need to arrange extra cover or look for unoccupied home insurance.
Do I have to keep buildings insurance for the property I’m selling between exchange and completion?
You should keep your buildings insurance in place, even after you’ve exchanged contracts. You can cancel or potentially transfer your home insurance policy once the sale is complete.
Although the buyer should have their own cover for the period between exchange and completion, it’s wise not to assume. And there’s no guarantee that any claim they make would be accepted.
Imagine a storm damages the roof after you’ve exchanged contracts, but the buyer’s insurance provider finds they made a mistake on their policy and won’t pay out. The mortgage provider could pull the mortgage offer due to the uninsured property damage, causing the sale to fall through and leaving you with the repair bill.
What is dual insurance and how can it affect claims during exchange and completion?
Between exchange and completion, both the buyer and the seller may have buildings insurance cover on the same house. To clear up any confusion when it comes to claims, policies normally specify that, after exchanging contracts, the property is primarily covered by the buyer’s policy.
The seller’s policy can still act as a back-up in case there is a problem with the buyer’s policy. But it’s worth checking the terms of your policy and speaking to your provider directly to make sure you’re covered.
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As well as writing for Churchill and Privilege insurance websites, Karen’s CV includes working with M&S, Debenhams, Tesco, Sainsbury’s and John Lewis. With over 20 years of editorial experience for big household names she leads a talented content team with a focus on simplifying personal finance for everybody.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.
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