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Do I need buildings insurance when I exchange contracts?

Yes – once you exchange contracts, you’re legally responsible for your new home. That means it’s the right time to have buildings insurance in place.
Here’s what you need to know about arranging cover during the home-buying process.

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When should I get buildings insurance when buying a house?

You’ll need buildings insurance in place from the moment you exchange contracts – that’s when the property becomes your legal responsibility.

In fact, your mortgage provider may require it as part of your agreement, so it’s important to arrange cover before you complete the purchase.

Do I need temporary home insurance between exchange and completion?

You’ll need some form of buildings insurance once you exchange contracts – but whether you choose a temporary policy or start your full cover straight away is up to you.
Some insurers offer short-term buildings insurance specifically for the period between exchange and completion. If you go this route, make sure you let them know whether the property is vacant or still occupied, and confirm your planned completion date.
Temporary cover can have its benefits – it may make it easier to align your buildings and contents insurance from the same start date. It could also help you avoid paying for contents cover you don’t need yet.
If you choose a standard policy from the start, just be clear with the provider that you won’t be moving in straight away.

Can I wait until I move in to get buildings insurance?

It’s best not to wait. Once you’ve exchanged contracts, the property is your legal responsibility – even if you haven’t moved in yet.
If something happens, like a fire or flood before your moving day, you’d still be liable for the damage. That’s why it’s important to have buildings insurance in place from the moment you exchange contracts – so you’re protected from day one.

Is buildings insurance a legal requirement?

Buildings insurance isn’t a legal requirement, but it’s often essential. If you’re buying with a mortgage, your lender will almost always require it before completion. It may also be a condition in your exchange contract.

You don’t have to take out cover through your mortgage provider – you’re free to shop around and choose the policy that suits your needs.

If you’re buying without a mortgage, buildings insurance isn’t mandatory. But unless you could afford to rebuild or repair your home out of pocket, it’s strongly recommended.

Your solicitor may ask for proof of insurance before completion. That’s because, under the Standard Conditions of Sale, the responsibility for arranging cover usually falls to the buyer from the moment contracts are exchanged.

Do I need buildings insurance if I’m a leaseholder?

It depends on the terms of your lease. In many cases, the freeholder arranges buildings insurance for the whole property, and you’ll pay your share through the service charge. But that’s not always guaranteed.
Check your lease to see who’s responsible. If you’re unsure, it’s a good idea to email the freeholder to confirm – that way, you’ll have a written record if you need to arrange your own cover before exchange.
Want to understand more about your responsibilities? Take a look at our guide to the difference between leasehold and freehold.

Do I need buildings insurance for a new build?

Even if you’re buying a new-build or off-plan property with a warranty, you’ll still need buildings insurance in place from the moment you exchange contracts.

A new-build warranty typically covers structural defects for a set number of years – but it won’t protect you against events like fire, flood, or storm damage. That’s where buildings insurance comes in, giving you essential cover that a warranty doesn’t provide.

Want to know more? Explore our guide to insurance for new-build homes.

When should I start looking for home insurance?


It’s a good idea to start comparing home insurance before your exchange date. That way, you can line up your policy to begin as soon as contracts are exchanged – when you become legally responsible for the property.

Giving yourself time to compare quotes means you’re more likely to find the right level of cover at the right price. It also takes the pressure off, so you’re not scrambling for insurance at the last minute.

What does buildings insurance cover?

Buildings insurance is designed to protect the structure of your home and anything permanently attached to it. This typically includes:
The walls, roof, and windows
Permanent fixtures like your kitchen units and bathroom suite
Outbuildings and external features, such as garages, sheds, and fences
You’ll be covered for damage caused by a range of unexpected events, including:
Fire, flood, and storm damage
Vandalism or malicious damage
Burst or frozen pipes
Subsidence or ground movement (heave)
Falling trees or lamp posts
It’s essential cover that helps you avoid large repair costs if something goes wrong.

How to arrange buildings insurance before exchange

To arrange buildings insurance ahead of exchanging contracts, you’ll need a few key details about the property:
When the home was built
Whether it’s built with standard materials (like brick and tile) or non-standard ones
Any history of cracks, subsidence, or ground movement
If it’s close to tall trees or water
Whether it’s ever been flooded
If any building work is currently being carried out
Once you’ve gathered the details, you can start comparing quotes. Clarity Compare makes it easy to find the right cover – and if your home has unique features, you might also want to explore specialist policies for extra peace of mind.

What if I don’t know the answer to an insurer’s question?

If you’re unsure about something when getting a quote, don’t guess – giving the wrong information could affect your cover or lead to a rejected claim.
Instead, check your property survey, or speak to your solicitor or conveyancer. You can also ask your estate agent to contact the seller on your behalf. It’s always best to be accurate to make sure your policy is valid when you need it most.

How much should I insure my new home for?


When arranging buildings insurance for your new home, you’ll need to insure it for the rebuild cost – not its market value. This is the amount it would cost to completely rebuild your home from scratch, including labour and materials. Unsure how to work it out? A homebuyer’s survey or chartered surveyor can help estimate the rebuild cost for you.

Who’s responsible if the property is damaged between exchange and completion?

Once contracts are exchanged, you’re legally responsible for the property – even if you haven’t moved in yet. That means if there’s any damage, such as a broken window or storm-damaged roof, it’s down to you to handle the repairs. Make sure your home insurance is in place from the date you exchange, not the date you move in.

What should I think about when choosing buildings insurance?

When comparing buildings insurance, it’s important to look beyond the price. Here are a few key things to consider:
Excess – This is the amount you’ll pay towards a claim. Make sure it’s affordable for you.
Planned building work – If you’re not moving in straight away because of renovations, let your insurer know in advance.
Alternative accommodation – Check if the policy covers the cost of somewhere to stay if your home becomes uninhabitable due to fire or flood.
Trace and access – Some policies include cover to find and fix the source of leaks or unblock sewage pipes.
If you’re planning major home improvements, like an extension or loft conversion, remember to update your policy – your rebuild cost could go up.
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