We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Buildings Insurance - No longer a mortgage

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

Comments

  • noh
    noh Posts: 5,827 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Makes no difference in the premiums at all.
  • Brodiebobs
    Brodiebobs Posts: 1,050 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.
  • dogbot
    dogbot Posts: 1,062 Forumite
    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!
  • Thankyou to all who have replied
  • 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!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.8K Banking & Borrowing
  • 254.6K Reduce Debt & Boost Income
  • 455.6K Spending & Discounts
  • 247.7K Work, Benefits & Business
  • 604.7K Mortgages, Homes & Bills
  • 178.7K Life & Family
  • 262.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.