Delaying Landlord Insurance?

[John Phelps]

Hello,

I am looking at purchasing a SFH and I currently have a mortgage on the current home that I own. Seven months ago I unwittingly refinanced my current property though so I am subject to the "primary residence clause" if I move into my next property within the next five months. I am in the process of weighing out all of my options because I have an opportunity to buy an unlisted property through a private connection of mine, but of course it would have to be in the next couple months. I have already been approved for the mortgage for the new property and would like to move into it as my primary residence.

I am wondering if since there would only be approximately three months of time that I would be in violation of that clause, if I could simply not transfer my insurance policy to a landlord policy until after the year has lapsed.  I know that I would run a risk of something not being covered if there was an accident but I think I would much rather take that risk than have my insurer send a notice to my lender pointing out that I transferred my policy to a landlord policy prior to one year passing.

Unless I’m not seeing something, I don’t think there’s any way that my lender could find out that I am not the primary resident over such a short amount of time if my insurer doesn’t tip them off.  Assuming of course that they don’t happen to do a random spot check on my property because all of my payments are up to date.

If anyone has any other ideas of how I can, with a reasonable amount of risk, get around this issue it would be greatly appreciated.

Thank you.