The conveyancing solicitor should make proper arrangements to ensure that the property is insured at the time of completion of transaction, to allow the policy to take immediate effect upon exchange of contract. Insurance is affected by one of the following methods:
- By making a note on a block policy that is held by the buyer’s conveyancing solicitor to cover all properties currently handled by the firm.
- And when the property to be purchased is mortgaged the conveyancing solicitor can ask the lender to insure the property. Standing instructions to the lender should include-
a) The cover amount should be sufficient so as to include the value of the property and the type of risk involved.
b) The property would be put on cover from the time of exchange of contract.
c) The insurance requirements should not be in conflict with the terms of the contract or any lease to which the property is subject to.
It can also be taken by the buyer to protect the property from exchange.
Photo courtesy: Alex Brown
