--- title: When to buy insurance for a new property? description: How is such a situation even possible and what can you do to protect yourself from similar problems? image: https://blog.fivestarmortgages.co.uk/hubfs/pexels-karolina-grabowska-5882683.jpg --- Open main menu Close main menu # When to buy insurance for a new property? ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=45&name=176-marta-manuszewska_xl.jpg) [Marta Manuszewska](https://blog.fivestarmortgages.co.uk/author/marta-manuszewska) [Share this blog post on Twitter](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://blog.fivestarmortgages.co.uk/buy-insurance-for-new-property) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://blog.fivestarmortgages.co.uk/buy-insurance-for-new-property) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fivestarmortgages.co.uk/buy-insurance-for-new-property) ![](https://blog.fivestarmortgages.co.uk/hubfs/pexels-karolina-grabowska-5882683.jpg) ## ![FiveStar Mortages customer buying home insurance](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/pexels-karolina-grabowska-5882683.jpg?width=6720&name=pexels-karolina-grabowska-5882683.jpg) ## When to Buy Insurance for a New Property? Going through all the paperwork involved in buying a new home can be a bit overwhelming. However, their neglect may lead to a financial catastrophe. For example, The Guardian described the story of a British family having to pay a bill of £ 50,000 to repair damage to a home that did not officially belong to them. How is such a situation even possible and what can you do to protect yourself from similar problems? We hope to fully answer these questions in our article. ## Case study - history of a British family In the aforementioned [**text**](https://www.theguardian.com/money/2018/jul/28/buying-home-insurance-exchange-completion?CMP=fb_gu)**,** The Guardian, the parents of a young child decided to buy a new home. After paying the deposit, they have completed the so-called exchange of contracts. However, they were not allowed to stay on the property until the purchase was finalised (with English completion), which usually takes a few extra weeks. The family did not take out home insurance so that the property was already protected when the contracts were exchanged, and that was the biggest mistake. The building was partially destroyed by the flood before the purchase was finalised. The family then faced the following choice: to pay the bill for repairing the damage or withdraw from the purchase. Even though the second option seems reasonable, the pair would lose £ 50,000 on their deposit. In other words, the money would be lost anyway. This unfortunate situation was perfectly legal under British law. The family obviously blamed their lawyer for not informing them of the potential ramifications of not insuring the property. The lawyer, in turn, insisted that it was the buyer's duty to read and understand the document that he signed. Even if it is 40 pages long. The question is if you decide to take such an important step as buying an apartment, would you like to receive the described level of service from your mortgage advisor or lawyer? ## Choosing the right mortgage adviser in the UK All advisers at Five Star Mortgages realise that it is imperative to insure your property before replacing contracts. We would never ask you to sign any documents without making sure you fully understand them. In addition, we are always happy to provide you with additional advice so that you are aware of the potential consequences of each of your decisions. As choosing the right lawyer is also important, Five Star Mortgages can recommend those professionals who will always act in your interest. ## Exchange of contracts and finalisation of the purchase Before we get to our conclusions, we decided to prepare a short guide on the differences between exchanging contracts and finalising a purchase. All information is provided in the table below. ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=150&name=176-marta-manuszewska_xl.jpg) #### Marta Manuszewska [Follow me on my website](https://www.positiveadvisers.co.uk/) [Follow me on Facebook](https://www.facebook.com/positiveadvisers) [Follow me on LinkedIn](https://www.linkedin.com/in/marta-manuszewska-dipfa-cemap-6a199670/) Marta lunched Five Star Mortgage is 2016 having worked the previous 3 years providing mortgage advice along side a Law firm and the previous 7 years in residential lettings. This grounding in property has seen her grow a huge following in this area. Over the years Marta has seen her clients grow financially and need more and more complex advice. She set a goal and achieved this in 2019, that goal to qualify to provide Independent Financial Advice. At this point Marta became a Director / Owner of Positive Advisers Ltd and is now passionate in helping many of her mortgage and new clients with more complex financial planning advice. Marta lives in Oundle with Mark her partner and co-owner and son. Her favourite TV program is “Suits”. She enjoys theatre, concerts, dining out and spending time with family and friends. ### Leave a Comment ## Related Articles [![Homes in the UK](https://blog.fivestarmortgages.co.uk/hubfs/super-straho-wDTIGTomUlw-unsplash.jpeg)](https://blog.fivestarmortgages.co.uk/uk-home-buying-process) ### [What is the process of buying a home in the UK?](https://blog.fivestarmortgages.co.uk/uk-home-buying-process) ## 1. Determining your affordability The amount of a mortgage that you can obtain depends on your income, family situation and the term of a mortgage. 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Everything depends on... ![Marta Manuszewska](https://blog.fivestarmortgages.co.uk/hs-fs/hubfs/176-marta-manuszewska_xl.jpg?width=45&name=176-marta-manuszewska_xl.jpg) [Marta Manuszewska](https://blog.fivestarmortgages.co.uk/author/marta-manuszewska) [Read More](https://blog.fivestarmortgages.co.uk/what-is-help-to-buy) #### Five Star Mortgage Services - [Residential Mortgage](http://www.fivestarmortgages.co.uk/en/residential-mortgage) - [Commercial Mortgage](http://www.fivestarmortgages.co.uk/en/commercial-mortgage) - [Our Insurance](http://www.fivestarmortgages.co.uk/en/our-insurance) - [Employee Benefits](http://www.fivestarmortgages.co.uk/en/employee-benefits) - [Will Writing Services](http://www.fivestarmortgages.co.uk/en/will-writing-services) #### Postive Advisers Financial Services - [For Business](https://www.positiveadvisers.co.uk/business) - [For Individuals](https://www.positiveadvisers.co.uk/individuals) - [Development Finance](https://www.positiveadvisers.co.uk/development-finance) - [High Net Worth Mortgages](https://www.positiveadvisers.co.uk/high-net-worth-mortgages) - [Assets of £550k to 2 Mill](https://www.positiveadvisers.co.uk/assets-of-500k-to-2-million) [![Contact Positive Advisers for Financial planning advice.](https://no-cache.hubspot.com/cta/default/20233606/8217c43c-f2e1-4c4e-90d4-36a8b69c0b83.png)](https://cta-redirect.hubspot.com/cta/redirect/20233606/8217c43c-f2e1-4c4e-90d4-36a8b69c0b83) --- [![Contact Five Star Mortgages](https://no-cache.hubspot.com/cta/default/20233606/2bfa28a1-5449-4b20-8b30-59236d926188.png)](https://cta-redirect.hubspot.com/cta/redirect/20233606/2bfa28a1-5449-4b20-8b30-59236d926188)