Buildings and Contents Insurance Missold?

KieranB

Hello,

My mother was speaking to me today about her Buildings and Contents insurance. She have her mortgage with Halifax and they sold her the insurance at the time she got the mortgage. She was under the impression until today that the insurance come with the mortgage (i.e - there wasn't any additional cost to just taking out the mortgage with no insurance)

She is not the most financially aware person but I still convinced this could have ben missold..

I turn to you people of this forum as you have a bit more knowledge than myself on this kind of thing. Do we potentially have a case?

Thank you!

marshallka

KieranB wrote: »

Hello,

My mother was speaking to me today about her Buildings and Contents insurance. She have her mortgage with Halifax and they sold her the insurance at the time she got the mortgage. She was under the impression until today that the insurance come with the mortgage (i.e - there wasn't any additional cost to just taking out the mortgage with no insurance)

She is not the most financially aware person but I still convinced this could have ben missold..

I turn to you people of this forum as you have a bit more knowledge than myself on this kind of thing. Do we potentially have a case?

Thank you!

Hi, buildings and contents insurance is usually an annual insurance that covers your building and contents? Do you mean mortgage PPI perhaps?

KieranB

I asked her that before. She said it wasnt PPI she actually had her buildings and contents insurance added onto her monthly mortgage payments.

If this doesnt seem like a normal thing I will go back and ask to see paperwork. Perhaps she was confused.

marshallka

KieranB wrote: »

I asked her that before. She said it wasnt PPI she actually had her buildings and contents insurance added onto her monthly mortgage payments.

If this doesnt seem like a normal thing I will go back and ask to see paperwork. Perhaps she was confused.

I once took out buildings and contents once with my mortgage provider and we paid monthly too. Did she not want buildings and contents insurance. I think sometimes and certainly a while ago you had to prove you had buildings insurance when you had a mortgage. Was it a terrific amount that she could have got much cheaper elsewhere or something?

KieranB

marshallka wrote: »

I once took out buildings and contents once with my mortgage provider and we paid monthly too. Did she not want buildings and contents insurance. I think sometimes and certainly a while ago you had to prove you had buildings insurance when you had a mortgage. Was it a terrific amount that she could have got much cheaper elsewhere or something?

Yes it would be a lot cheaper elswhere. The reson my mum spoke to me about this was because she got a letter through stating how much it is to renew. She checked on moneysupermarket.com and the price Halifax were offering was roughly 250% of the cheapest amount.

marshallka

KieranB wrote: »

Yes it would be a lot cheaper elswhere. The reson my mum spoke to me about this was because she got a letter through stating how much it is to renew. She checked on moneysupermarket.com and the price Halifax were offering was roughly 250% of the cheapest amount.

Really never heard of this before but I am sure someone will post soon with some ideas.;)

maxdp

Hi
quite often when you take out a mortgage etc say with C and G cause they are part of Lloyds they will offer their home and buildings insurance at the same time. This is quite normal that they do this. They should not have added it to the mortgage. It should be a premium on its own that you pay in one lump or monthly.

The price comparison site will probably be cheaper than the insurance sold at the time of the mortgage that is usually the case. It is always best to check out insurance on these sites. Perhaps check them individually as well as a package to get the best deal.

simon_templar_2

Be aware that cheapest will more than likely mean the cover is not as extensive as a dearer one and will probably have dearer excesses to pay in the event of a claim.

robertjonesuk

insurance is not added to the mtg, but the monthly payment for insurance is taken with a mtg direct debit. your mum can cancel the insurance at any time (there may be a cancellation fee).

you can only claim that the insurance was missold if she didn't need it, and as someone already posted, normally when you take a mtg you're required to have some kind of a home insurance.

also, while i understand that your mum may struggle with understanding financial products, how come she managed to arrange the mortgage. from what you said, i take it she did it without your or anyone elses's help.

if you're worried about her dealing with her finances, you should have helped her arranging her mortgage.

marshallka

simon_templar wrote: »

Be aware that cheapest will more than likely mean the cover is not as extensive as a dearer one and will probably have dearer excesses to pay in the event of a claim.

I quite agree Mr Templar;)

simon_templar_2

My reputation is world famous of course!