Who Are Required To Buy Buildings Insurance UK?

2008-09-29 10:55:48

( Insurance )



If you purchase your home through a mortgage, then you will have no choice but to purchase buildings insurance UK to fulfill the requirement of the law. The amount of the buildings insurance cover that you buy must be enough to meet your outstanding mortgage balance. It may happen that the remaining balance of your mortgage would become lesser as you are paying your loan every month. As a safety financial precaution, you may take out buildings insurance UK which covers sufficiently to your home's rebuilding costs.

While your mortgage lenders require you to get buildings insurance UK, they cannot dictate you on the insurer that you should choose. Instead, they are allowed to provide you at least three insurers, or you can propose to them the insurer that you want. In the latter case, lenders may impose a small charge for your choice of insurer that is not on their recommended list. Or, they can reject your choice, but they are not allowed to demand that you buy their own buildings insurance product.

In case you are buying or selling a home, the obligation to get buildings insurance UK is transferred to the new owner from the moment the contract of sale is perfected. If you are the buyer, you must ensure that the house is adequately covered from the date of sale. Remember that in case the home is damaged after the perfection of the contract, you are expected to cover for the loss. If, on the other hand, you are the seller, your legal obligation to have the house covered by buildings insurance UK is only until you sell the property and the corresponding contracts have exchanged hands.

While it is not legally required that you purchase buildings insurance UK if you are a homeowner without a mortgage, it is advisable that you cover your property.


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