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Contents insurance needed on exchange or completion?

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Contents insurance needed on exchange or completionI’m about to exchange contracts on 2 buy-to-let properties next week to add to the property I already own and rent out.

According to the Citizen Advice website “You should make sure that buildings insurance is arranged from the date of exchange, because once contracts have been exchanged you are responsible for the property.” 

Both flats have buildings insurance already in place paid for by the management company.

My question is in relation to contents insurance.

Do I need to purchase specialist landlord contents insurance on exchange or on completion?

Thanks

Stephen Fitzgibbon

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Comments

  • Hi Stephen

    The CAB advice is correct in relation to buildings insurance on freehold properties. However, there is no legal requirement for you to purchase contents or landlords insurance at any time, regardless of whether the property is freehold or leasehold. Having said that I strongly recommend having contents and landlords liability insurance. Please see >>> http://www.property118.com/landlords-liability-insurance-do-flat-owners-need-it/34214/


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  • There is a difference between freehold houses and flats. You must insure the buildings on exchange of contracts on a freehold. The service charges on a leasehold flat will include your share of premium for buildings insurance . You therefore need to Consider landlords contents cover but most importantly third party liability and possibly even employers liability so that any injury caused to your tenant, visitors or contractors due to your potential negligence is covered. I would do this on exchange of contracts as a matter of course bearing in mind the premiums are much less than or buildings insurance. You only need someone to trip and injure themselves on a worn carpet to land you with a potential claim!


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  • Michael Dibben says:

    If you are buying the property with furniture and other contents already in it I would start the insurance cover as soon as you exchange contracts. It is likely the seller has their own insurance cover, but you have no control over that so it is best to have your own cover. Also check carefully the terms of the management company’s block buildings insurance cover to make sure it covers flats that are let out and not just flats that are owner-occupied.


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  • Phil says:

    Be carefull with Heathers advice
    it is not necessarly true that the freeholders pay for insurance on leasehold properties I know I own 2 maisonettes which don’t.
    HTH Phil


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