Insuring a Property You Are Selling or Between Homes
Moving house creates several days where responsibility for insuring property is unclear, and the assumptions people make are frequently wrong in ways that only matter if something happens.
When buildings risk passes
In many jurisdictions the buyer becomes responsible for insuring the property from exchange of contracts rather than from completion, because they have a binding commitment to purchase.
That can be weeks before they have the keys. During that period the seller still lives there and the buyer carries the risk.
Mortgage lenders usually require buildings cover to be in place from exchange, and the buyer should arrange it then rather than on completion day.
Sellers should not cancel their own buildings cover until completion, since they remain in occupation and have an insurable interest.
Contents during the move
Contents cover generally follows the possessions rather than the address, but policies vary in how they treat goods in transit.
Many home policies exclude damage occurring during removal, or cover it only if a professional removal firm is used.
Professional removers carry their own liability, and it is frequently limited by weight rather than value, and subject to conditions about who packed the items. Goods packed by the owner are commonly excluded from the remover's cover.
Check both policies and consider a specific transit extension for a move involving valuable items.
Empty periods
If the property is empty between the seller leaving and the buyer moving in, unoccupancy conditions may apply.
Most policies restrict cover after a stated period of vacancy, and some impose conditions immediately — securing the property, turning off the water, maintaining minimum heating in winter.
A property left empty for a fortnight during a chain delay is common, and it is worth telling the insurer rather than assuming.
Overlapping ownership
Where completion on the sale and the purchase happen on the same day, both properties need cover for that day.
Where they do not align, one property may be owned and empty while the other is still occupied, and both need appropriate cover for their status.
Practical checklist
Arrange buildings cover on the new property from exchange, not completion.
Keep existing cover running until completion on the sale.
Tell both insurers the dates, and ask specifically about goods in transit and any empty period.
Confirm what the removal company's liability actually is, in writing, and whether owner-packed boxes are covered.
Photograph valuable items before they are packed, which is the evidence any claim will require.
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