The Importance of Insurance after you exchange contracts

A client came to me a little while ago who needed to complete a purchase on a property. He had exchanged contracts on the purchase and paid his deposit with a very long settlement time. So far it sounded very normal.

BUT!

A few weeks after exchanging contracts and now being responsible for settling the debt, a fire destroyed the property causing the building to be demolished and now the client had to settle on a property that no longer had a building there!

Luckily for him he had insurance in place AND a long settlement time. This allowed him to be able to wait for the fire investigation to be completed and then go to the insurer. The insurer agreed to pay the policy out to re-build, BUT only on the condition that the purchase was funded and settled.

Strangely enough, even though the insurer had guaranteed to rebuild there were not a lot of lenders who were keen on this type of scenario.

After some searching and sending numerous scenario’s to many lenders I found one who would do it. We got the loan approved and settled the purchase, as well as the client being able to get his new premises built.

Without insurance this could have cost the client immeasurably. Without my access to over 50 lenders the client would have also found it difficult, time consuming and frustrating to find a lender who would also do it.

Let me help find you the best solution, I am here to help. Justin Cornock