Buildings Insurance
It is also not uncommon for the same the building to be insured twice ,once by the seller and twice by the buyer right up until the completion date of the transaction. Anything that might happen to the property before that date is the liability of
the seller and the buyer is not accountable - however , if something happens after the ‘exchange of the contracts’ and the property is destroyed, the buyer is still legally bounded to purchase the property but may require a new place to live for the mean time (temporary accommodation is often taken care of by the insurance company also).
The policy issuer also has no requirement to return your finance - just to build the house back to as near as identical condition is was in prior.
Some of the means by which it will finance to do that may include:
Temporary accommodation for you and your family
Damages to 'outbuildings' - such as a garage or your neighbours property some degree.
Architects
Cost of debris & site clearance
Surveyors
Construction materials
Labour
Fixtures and fittings (but not extended to valuable contents)
It is important to note here that the cost of the above may be less than what you paid
or more.
This is because a property is an asset and what drives the price of 'assets' is the law of 'supply and demand' i.e. what someone will be willing to pay for it or something similar is what drives the market, just like in stocks & shares.
