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Buildings Insurance - No longer a mortgage
adamandeve
Posts: 8 Forumite
We no longer have a mortgage and previously this was a factor in our buildings insurance renewal form (not sure about Contents)
Question is regarding Buildings Insurance when there is no longer a Mortgage involved. Also contents Insurance as well please.
To make sure that our insurer has accurate information I think we need to tell them there is no longer a mortgage.
If this is so
Will it increase the insurance cost? or
Will it decrease it? or
Have no change to the premium?
Policy is an Advantage Policy with the Insurance company which is NIG
I have looked through the schedule and accompanying policy booklet but cannot find anything about No Mortgage.
Advice will be greatly welcomed
Many thanks in advance
Question is regarding Buildings Insurance when there is no longer a Mortgage involved. Also contents Insurance as well please.
To make sure that our insurer has accurate information I think we need to tell them there is no longer a mortgage.
If this is so
Will it increase the insurance cost? or
Will it decrease it? or
Have no change to the premium?
Policy is an Advantage Policy with the Insurance company which is NIG
I have looked through the schedule and accompanying policy booklet but cannot find anything about No Mortgage.
Advice will be greatly welcomed
Many thanks in advance
0
Comments
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Makes no difference in the premiums at all.0
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it wont make a difference to the premiums at all insurance companies like to hold the info on who owns the property and who lives there.0
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The above may not be strictly correct - unless either posters work for NIG as underwriters. Ownership status is a rating factor for many insurers. You are moving from something like "owned - mortgaged" to "owned - outright". Yes the difference is likley to be nil or minimal, but it is quite possible that the rate may fall. You should see no increase in premium because of this though.
However, you must notify the insurer now, even if it is mid term, since it is a material fact and you will want the lender removed as an interested party on the buildings policy.
If you are indeed mid term there may be an administration or adjustment charge that will most likely wipe out any benifit. If they state that they wish to charge you an additional admin charge I would complain in this circumstance - I would have thought they would drop it fairly quickly.
Congrats on paying it off!0 -
Thankyou to all who have replied0
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no difference at all in premium cost.
the reason they ask if it is mortgaged - is because the lender needs to be named on the policy as they have a financial interest in the property.Not really comping any more as too ill - but hoping to win £1000+ in 2017 in cash prizes - watch this space!0
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