Buildings insurance - property in trust
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Yorkie1
Posts: 11,567 Forumite
In 2013, Mum and Dad put their property into a family protection trust (50% in each person's trust). Dad passed away 8 years ago but his FPT continues.
For the last couple of years, buildings insurance has been arranged through a brokers - most insurance firms wouldn't provide cover as the property was not owned by an individual. Mum has insured the contents separately.
I have just received a letter from the brokers, saying that NIG Insurance are withdrawing their Properties in Trust product. All cover under the policy will expire on 25/05/24. They have "made internal enquiries to source an alternative product but have not found a like for like solution."
This is obviously somewhat concerning!
Initial thoughts and queries:
I'd be grateful for any thoughts anyone may have. Thanks.
For the last couple of years, buildings insurance has been arranged through a brokers - most insurance firms wouldn't provide cover as the property was not owned by an individual. Mum has insured the contents separately.
I have just received a letter from the brokers, saying that NIG Insurance are withdrawing their Properties in Trust product. All cover under the policy will expire on 25/05/24. They have "made internal enquiries to source an alternative product but have not found a like for like solution."
This is obviously somewhat concerning!
Initial thoughts and queries:
- If Mum's buildings policy would otherwise have a later expiry date (I'm not sure what it is at present), does this count as cancellation of insurance which must be declared when seeking alternative cover?
- This brokers firm is a large, well recognised firm. If they can't source an alternative product, am I being unduly pessimistic to think that other brokers will be equally unsuccessful?
- Has anyone any ideas about what I should do next to help her find new buildings insurance (at an affordable price, hopefully)? Surely it can't be the case that all properties in trust are now uninsurable from a buildings cover perspective?
I'd be grateful for any thoughts anyone may have. Thanks.
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Comments
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What is more concerning is that they put the property in trust in the first place, no doubt after having paid a large fee to the salesman who convinced them to do it.
The trust is effectively your mum’s landlord so maybe a provider of LL insurance might be worth a try.2 -
Hi, in almost exactly the same situation. We placed a house in trust for my daughter some years ago. It's become increasingly difficult to insure it over the years, (in the first instance it was simply a matter of changing the name on the policy) and now I've just had the same letter (from Howden the brokers in Edinburgh) telling me effectively to go away. I've raised an enquiry with BIBA (the brokers association), and am waiting for a call back. All a bit concerning as you say, but there must be thousands of people in the same situation. AG
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Hi again, have re-arranged insurance through UKinsuranceNET on a landlord basis as suggested above. Very helpful. AG
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Thanks @Auldgit - really appreciate this. Yes, the letter I had was from Howdens too.
I'm waiting for her solicitors to come back to me to confirm whether the property ownership is stil 100% in the two FPTs (50% in each), or whether 50% has been transferred back to Mum. What a mess.
I'll make a note of BIBA and the firm you mention for when I know what I'm dealing with.0 -
BIBA were helpful on the phone but never got back to me, so I think your best bet is UKinsuranceNET. Good luck with it all. AG
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