50Sale of insured property

50 Sale of insured property

(1) Where: (a) a person (in this section called the purchaser) agrees to purchase, or to take an assignment of, property and in consequence the purchaser has, or will have, a right to occupy or use a building; (b) the building is the subject‑matter of a contract of general insurance to which the vendor or assignor under the agreement is a party; and (c) the risk in respect of loss of or damage to the building has passed to the purchaser; the purchaser shall be deemed to be an insured under the contract of insurance, so far as the contract provides insurance cover in respect of loss of or damage to the building and such of the contents of the building as are being sold or assigned to the purchaser at the same time, during the period commencing on the day on which the risk so passed and ending at whichever of the following times is the earliest: (d) the time when the sale or assignment is completed; (e) the time when the purchaser enters into possession of the building; (f) the time when insurance cover under a contract of insurance effected by the purchaser in respect of the building commences; (g) the time when the sale or assignment is terminated. (2) A reference in this section to a building includes a reference to a part of a building and also includes a reference to a structure.