Nationwide Mortgage & Home Insurance Question

Perception

Hi,

I am new to the forum and think that it is an excellent resource.

I currently am trying to re mortgage from Halifax to Nationwide and have been informed by my broker that I have to increase my home insurance rebuilding costs to £500k as it is a minimum amount from NW as one of their conditions.

The house is only worth half of this (250k) and would probably only cost 150k to rebuild. I currently pay around £30 a month but have been quoted £67 a month to upgrade it to £500k cover. As you can imagine the increase was a bit of a shock!

Has anyone else experienced something similar with a Nationwide mortgage?

Any advice is gratefully received.

dunstonh

It probably means an automatic cover policy up-to £500k. Rather than an older set sum assured policy stating £500k. You are probably getting prices on the latter.

minimike2

lol....thats shocking. I have never had a problem like this with Nationwide and there are insurances that give £500k blanket policies that im sure you could find cheaper....but it depends what other cover is in with it. You havent said if you have accidental damage, conents, personal possesions, home emergency, legal expenses, specified items, no claims discount, low excess etc etc etc, so its impossible to really judge the price without doing a full comparison. A lot of policies are also rated on the number of bedrooms you have.

hostman

That's expensive buildings insurance, does that include contents also?

I've just arranged Buildings and Contents through Direct Line for our first time purchase, this includes rebuild cover up to one million, contents up to 16k and emergency repair cover all for only £12 a month ...

minimike2

On the flip side.....you get what you pay for......

hostman

minimike2 wrote: »

On the flip side.....you get what you pay for......

You can hardly attach such a statement to Direct Line - Very good insurance company. Been very good to me throughout the years with my car insurance.

minimike2

Thats debateable.


This hits the nail on the head:-

http://www.money.co.uk/article/1001583-defaqto-warns-on-unsuitable-home-insurance.htm

hostman

minimike2 wrote: »

Thats debateable.

Are you going to provide an anecdote to backup your claims?

robnye

more and more insurance companies are providing a blanket type cover for buildings... ie £500K

different people have different experiences with different insurance companies........! otherwise life woudl be boring if we where all the same

hethmar

Nationwide dont demand you insure with them. I dont really understand this at all.

tyllwyd

Our house is worth a similar amount to yours (4 bed detatched, worth something like (?) £250K). We've just moved our contents/building insurance to Nationwide and we're paying something like £20 per month. (We've already got a Nationwide mortgage.) I think you should have a look at the figures - maybe go to the Nationwide website and get a quote to see exactly what you are paying for.