When buying a home, one of the lesser-known but crucial steps before completion is arranging building insurance. It might seem like a formality, but it’s actually a key legal and financial safeguard.

Why It’s Required at Exchange

At the point of exchange, contracts are legally binding. That means you’re now committed to purchasing the property—so if something happens to it between exchange and completion, you’re still responsible. Building insurance ensures you’re protected from unexpected damage, such as fire, flooding, or structural issues, during that period. In most cases, lenders also make it a condition of the mortgage, as they want to protect the asset they’re helping you buy.

What Building Insurance Covers

A standard policy protects the structure of the property—walls, roof, floors, and permanent fixtures such as kitchens and bathrooms. It doesn’t cover contents, which can be insured separately. Check that your policy provides enough cover to rebuild the property completely, not just the purchase price, as rebuilding costs can be different.

Checking and Choosing the Right Policy

Before exchanging contracts, compare quotes from reputable insurers and read the small print carefully. Look out for exclusions, limits, and requirements, especially if the property has features such as a thatched roof or is in a flood-risk area. Ensure the policy begins on the day of exchange, not completion.

Don’t Leave It Too Late

Your solicitor will usually ask for proof of insurance before you exchange, so sort this out in advance. That way, you’ll avoid delays and ensure your future home is protected from day one.

Building insurance isn’t just a tick-box task—it’s your first layer of defence for your biggest investment. At Sawyer & Co, we understand the importance of safeguarding your new home and are here to assist you throughout the buying process.