Exchanging contracts? Get insured first



Purchasing a property can be a busy, stressful time and it can seem like there are a million things to remember. Some things however, are more important to remember than others – for example, getting the right insurance in place at the right time.

Many people believe that they only need to take out buildings insurance once they move into their new home. However, this is not the case. It can come as a surprise to find out that, in most cases, the responsibility for insuring the property becomes the buyer’s as soon as contracts are exchanged.

Avoid stress, get prepared
Exchange – Once contracts have been exchanged, you’re committed to the purchase and can’t back out without forfeiting your deposit.

Insure – If the property is damaged or destroyed between exchange and completion, you’re still contractually bound to complete the purchase and will immediately face hefty costs to repair your brand-new home.

Relax – To avoid stress and guarantee peace of mind, researching your options in advance and taking out insurance on the day contracts are exchanged is very important.

Getting the right policy
Buildings insurance covers the cost of repairing or rebuilding your property in the event of damage. It covers the structure of the property, as well as outbuildings such as garages and sheds and fences, and external items such as pipes, cables and drains. It doesn’t cover possessions and furniture inside your home – you will need a separate contents insurance policy for this.

How much you pay for buildings insurance will depend on the rebuild value of your new home. This should not be confused with the property’s current asking price. It is how much it would cost to completely rebuild your home from scratch. There are tools available to help you calculate the rebuild value of your home, including a special calculator on the Association of British Insurers’ website.

Here to help
We can help you find he most suitable buildings insurance policy for your circumstances, giving you one less thing to worry about. We can also advise on any additional cover you may need and get everything in place by the time you exchange.

As with all insurance policies, conditions and exclusions will apply

Exchanging contracts


  • Many house buyers are surprised to find out that they need buildings insurance in place as soon as contracts are exchanged, not from when they move in.
  • Exchanging contracts means you’re committed to the purchase and are legally obliged to continue even if the building is damaged before completion.
  • Buildings insurance covers the structure of the property, outbuildings and external features like pipes, drains and cables. It should not be confused with contents insurance, which covers possessions, furniture etc.
  • Your buildings insurance quote will be based on your new home’s rebuild value, i.e. what it would cost to rebuild it from scratch.
  • Let our advisers assist you in finding the ideal buildings insurance policy for you.