First-Time Buyers Urged to Secure Property Cover Before Moving

With Blackpool remaining one of the most affordable housing markets in the UK-boasting average house prices around £135,000 according to recent Land Registry data-the resort town continues to attract a high volume of first-time buyers purchasing traditional brick terraces, coastal flats, and semi-detached family homes.

However, conveyancing experts and property analysts report that a significant proportion of new buyers mistakenly believe building insurance is only required from the day they physically move in.

In standard English and Welsh property transactions, legal responsibility for the physical structure of a home transfers from the seller to the buyer on the day contracts are exchanged, not on completion day when money changes hands and keys are handed over.

This means that during the typical two-to-four-week window between exchange and completion, the buyer bears full financial risk if the building suffers structural damage, fire destruction, or severe weather impact.

If a storm causes structural damage or a major plumbing leak floods the property during this interim period, the buyer remains legally obligated to complete the purchase at the agreed price. Without an active building policy in place from the exact date of exchange, the buyer would have to fund repairs out of pocket.

Furthermore, mortgage lenders operating across the Fylde coast strictly require proof of a valid building insurance policy before they will release mortgage funds for completion.

The importance of securing structural coverage early is further highlighted by the North West's exposure to harsh maritime weather. With coastal windstorms and tidal surges frequently battering the Fylde coastline during autumn and winter months, residential structures face elevated risks of roof tile displacement, chimney masonry damage, and water ingress.

Industry statistics published by the Association of British Insurers (ABI) confirm that weather-related home claims across the UK reached £1.4 billion over the past year. Coastal and exposed northern regions consistently record higher frequencies of storm-related structural claims.

For buyers taking their first steps onto the property ladder, knowing what is covered by building insurance is essential when evaluating policy terms and lender requirements.

Building insurance is designed to cover the cost of repairing or completely rebuilding the physical structure of a home following catastrophic events. A standard policy covers:

• Core Structure: External walls, roofs, foundations, chimney stacks, and load-bearing elements.
• Permanent Fixtures: Fitted kitchens, bathroom suites, built-in wardrobes, and fitted flooring.
• Outbuildings & Boundaries: Garages, permanent sheds, boundary walls, gates, and driveways situated within the property boundary.
• Professional & Site Overhead: Costs associated with site clearance, structural stabilization, architect fees, and legal fees required for reconstruction.

Unlike contents insurance, which protects moveable personal possessions inside the property, building insurance protects the physical brick-and-mortar asset itself.

"The period between exchanging contracts and completing a home purchase is one of the biggest blind spots for first-time buyers. The moment contracts are exchanged, the legal responsibility for the physical building transfers to the buyer-even if the seller is still living there. If a storm damages the roof or a pipe bursts before move-in day, a buyer without building insurance in place could find themselves legally bound to pay for a damaged property."

- Fiona MacLean, Senior Property Risk Analyst at Lemonade UK

First-time buyers in Blackpool must also distinguish between freehold and leasehold ownership rules, particularly when purchasing coastal apartments or converted flat conversions along the Promenade and town centre.

• Freehold Houses: The buyer is directly responsible for arranging and maintaining their own individual building insurance policy starting from the date of exchange.
• Leasehold Flats: Building insurance is usually arranged centrally by the freeholder or block management factor, with the cost recovered through annual service charges. In these cases, the buyer’s conveyancing solicitor must verify that the existing block policy is active and covers lender requirements prior to completion.

For further advice on local housing developments and buyer guidance across Fylde and Wyre, visit the Blackpool Gazette property section.

Property advisers recommend that prospective home buyers follow a strict checklist as their transaction approaches exchange of contracts:

1. Request the Rebuild Value: Ensure you obtain the accurate reinstatement cost (building rebuild value) from your survey report (RICS), rather than using the open-market purchase price.
2. Align Coverage with Exchange Date: Instruct your insurer to activate the policy starting precisely on the date contracts are formally exchanged.
3. Provide Proof to Conveyancers: Send your building insurance policy schedule and interest notation to your solicitor promptly to avoid delays in releasing mortgage funds.
4. Differentiate Buildings and Contents: Ensure contents insurance is scheduled to start on your physical move-in day to protect personal items being transported to the new address.