Ask an Expert – this month we tackle your building insurance queries
Q: “I am in the process of buying a flat, and I am very confused by the insurance requirements; I have been told that in order for the transaction and mortgage to go through I need to buy insurance for the flat. Is this correct?”
This is a common insurance misconception, particularly in areas such as London where there is a very high density of flats, often resulting in duplication of insurance.
It is entirely normal that your solicitor will need to see evidence of insurance of the building before a purchase can go through, where the purchase is a flat there will normally be a single buildings insurance policy in place that covers the whole building/block, regardless of how many flats there are therein.
This should meet the solicitor’s mortgage lender’s requirements, although you may need to make sure that the interest of your mortgage lender is noted on the policy.
Unless you have any outside interest in any of your contents/possessions there is not normally any requirement for you to buy contents insurance, although we would always suggest this is sensible insurance coverage to buy.