Buildings Insurance Query..

[shulgin1000]

I have everything in place to allow for the initial mortgage drawdown/first stage payment. The only thing outstanding is a copy of the building insurance cert.
This is not a self-build - I am buying a 4 bed semi in a new estate from a developer. I had assumed that a copy of the actual builders insurance cert would be adequate at this stage and instructed my solicitor to get this from the builders solicitors -> to the UB mortgage centre in order to get the drawdown through.
My solicitors have come back with the following:
'I have spoken with the builders solicitors and made the inquiry about the buildings insurance.There is insurance cover available for houses under construction with an option to switch from it to full buildings insurance when the house is complete. This insurance should be taken out by yourself since it will be possible to convert it to full insurance after a while and after the initial stage payment (initial drawdown) the property will be transferred to you.'

Question1: Surely the builders already have insurance in place anyways - and i can provide the bank with a copy of my own insurance when the house is completed - and its possible for me to get normal house insurance?

Question2: Should I just go along with this - and if I do so, how much is builders insurance likely to cost me?
(house value when complete = 165k; completion should take another 4 months)

 

[Munsterdude]

Just got a quote for my own (self bulid) from alliance - €540 (plus my house is odd, so it has been loaded somewhat. (My house is a log home)

 

[shulgin1000]

Just got a quote for my own (self bulid) from alliance - €540 (plus my house is odd, so it has been loaded somewhat. (My house is a log home)

Is it not unusual that I should have to foot the bill for this - as I am not 'self-building'. I have bought off the plans from a developer - who is building an estate of about 30 houses...

 

[Novice]

If you are paying for the property now ( assuming this is why you want to draw down on mortgage at this stage) then you own the property and it is up to you to insure it. Teh bank has an interest in the property that they are providing the mortgage on and must insist that it be adequately covered. The policy that you will need is a standard enough household policy for buildings in the course of construction, it is not builders insurance. This will normally be limited to fire only type cover. I wouldn't think that ypur premium would be very exoensive and it can be upgraded to a full household policy when the build is complete.

 

[shulgin1000]

Ok, I suppose that makes sense. Thanks for your help Novice.

 

[shulgin1000]

Insurance quotes varied from 175 to 400 - FBD being the cheapest. This was to insure (fire/storm cover) a house which is blocked and roofed - 4 months from completion , valued at 165k. They will carry the insurance forward and an upgrade with 20% allowance for contents should cost me 100 euro more. Many of the other insurance companies that quoted - said i would have to start again with a new home insurance policy when the house was completed - and shell out in full again.

 

[Novice]

That's interesting, I'm surprised they wouldn't all upgrade it.€400 is crazy. If your happy go with FBD but it could be worth your while to go through a broker (especially is you have any other business with one) - you'd eb amazed at some of the deals they can get out of insurers - especially the bigger ones. FBD does seem very reasonable though.

 

[shulgin1000]

The only broker I called came up with the €400 figure. When I mentioned the FBD quote, he said he couldnt come anywhere near it.

 

[Bank Manager]

Recently received my home insurance renewal quotation. Thought it looked expensive. Applied for the same cover as I have with 123.ie. Received a quote almost E180 less than my own one. However, I see the underwriters are "Members of Wellintgton Syndicate 2020 at Lloyds". This un-nerves me a little. Am I exposed to a syndicate paying up if I need to make a claim? Has anyone insured already through this source? if so have you ever had to make a calim? if so, how did it go?