If you’re buying a property, one of the most common and important questions is: can you get buildings insurance before exchange of contracts?
The short answer is yes, and in many cases, you should. Understanding when buildings insurance is required and how cover works between exchange and completion can help you avoid serious financial risks. Without insurance in place, buyers can be legally required to complete the purchase even if the property is damaged by fire, flooding, storm damage or vandalism, potentially leaving them responsible for tens of thousands of pounds in repair costs before they even own the home. Norton Insurance Brokers, with 60 years of experience, are experts in Home and Building Insurance, and can help you get your Insurance needs sorted.
When do you need buildings insurance when buying a house?
In England and Wales, responsibility for the property usually passes to the buyer at exchange of contracts, not at completion.
From the moment contracts are exchanged, the property is legally considered “on risk”. This means that if the building suffers damage between exchange and completion, the buyer, not the seller, is financially responsible.
This is why house insurance on exchange of contracts is essential.
Can You Get Building Insurance Before Exchange?
Yes. You can arrange buildings insurance before exchange and set the policy to start on the day contracts are exchanged.
Many buyers do this in advance so everything is ready when exchange happens. This avoids last-minute delays and ensures you’re protected the moment legal responsibility transfers.
This type of cover is often described as:
- house insurance before exchange
- buildings insurance from exchange of contracts
- building insurance on risk
- home insurance exchange of contracts
Why is buildings insurance needed between exchange and completion?
TThe period between exchange and completion can last anywhere from a few days to several weeks.
Industry guidance from the HomeOwners Alliance shows that exchange-to-completion timelines are commonly one to four weeks, but can be longer in complex transactions:
During this time, buyers are exposed to risks such as:
- Fire
- Flood
- Storm damage
- Subsidence
- Vandalism
According to the Association of British Insurers (ABI), UK insurers pay out billions of pounds each year for property damage caused by storms, flooding and fire, events that can happen at any time, including between exchange and completion:
Without buildings insurance between exchange and completion, buyers may still be legally required to complete the purchase and fund repairs themselves.
What is exchange to completion insurance?
Exchange to completion insurance is not usually a separate or specialist product.
In most cases, it’s simply a standard buildings insurance policy that:
- Starts at exchange
- Continues seamlessly after completion
You may also see it referred to as:
- home insurance between exchange and completion
- buildings insurance before completion
- house insurance before completion
The important point is that cover must begin at exchange, not when you get the keys.
