property insurance required from exchange of contracts

Insure your new property as soon as you exchange contracts

You need to arrange property insurance as soon as you exchange contracts.  Otherwise you can become liable for the costs of repair if the property suffers from flooding between your contract exchange and completion.

This article tells the unhappy story of house buyers who had exchanged contracts on their new property. However, the property flooded before the purchase completed.  They are left with a £50,000 bill and a very unhappy situation

You can read more about this story here