Greater London Properties answers your question ‘Do I need to arrange building insurance when I buy a property?’
Do I need to arrange building insurance when I buy a property? Yes. you will need to arrange both buildings and contents insurance. If you are a first time buyer, then you may have bought contents insurance for your belongings but buildings insurance will be new to you. Buildings insurance in rented accommodations is done by your landlord but once you become a homeowner, it becomes your responsibility. This will be part of your deal with the mortgage lender, if you are going to be taking out a mortgage.
When should I buy home insurance?
Buildings insurance should be in place at the point when you exchange contracts with the seller of the property. Contents insurance should be done before you start to move into your new house. This is because it will cover your belongings if they get damaged or lost in the moving process. Most contents policies will cover your belongings but only if you use a professional moving company. Some estate agents such as Greater London Properties, can offer you a professional moving company to use.
How much should I insure my home for?
When buying a building cover, you will be asked to put a rebuild value of your property. This is the cost which would take to completely rebuild your home if it was destroyed. However, the price you paid for your house and the rebuild value are not the same thing. Rebuild value is the price of raw materials and labour required to build a house. To get an accurate value, you can use the Buildings Cost Information Service here.
What does insurance cost?
Contents insurance will depend on the postcode area and any extras you might choose to add on such as accidental damage cover. You will pay less if you previously didn’t make claims which is know as no claims discount. Buildings insurance will depend on the cost related to your rebuild value and whether you live in area prone to flooding.
To lower the cost of home insurance you can:
- use the same insurer for both contents and building insurance
- buying online
- paying your annual premium upfront
We hope this answers your question ‘Do I need to arrange building insurance when I buy a property?’. If you are looking to buy a property in Central London, please visit Greater London Properties, Central London’s largest independent estate agent or call us on 0207 113 1066.