According to the CPS, when should a buyer obtain insurance against risks such as fire?

The reasoning behind obtaining insurance against risks such as fire at 12:01 on the completion date aligns with the concept of risk transfer in property transactions. Once the completion date arrives, the ownership and responsibility for the property transfer from the seller to the buyer. At this moment, the buyer is at risk for any damages to the property, including potential fire damage. By ensuring that insurance is in effect at 12:01 on the completion date, the buyer is protected immediately upon taking ownership.

Acquiring insurance before the completion date, whether it’s during the contract signing or after the offer acceptance, would not adequately cover the buyer during the period when they are still not officially the owner of the property. By contrast, waiting until after the completion date would leave the buyer exposed to risks, particularly during the time just after taking ownership. Thus, commencing the insurance coverage at the stroke of midnight on the completion date provides timely protection, which is essential given the sudden shift in liability and financial responsibility.