Buildings and Contents Insurance Missold?

Rolandtheroadie

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.

Come on, my bank/mortgage provider wanted £48 per month with accidental damage on building and contents but Norwich Union for the same cover (and same excesses) are only £21.
What mortgage providers do you guys work for.

tAngo_4

i dont know if im on the right thread but i wonder if someone can help me, i went into my bank the other day. found out that someone opend a content insurance and im paying there bill.:mad: for a d-debit was set up on my account. £17 was taken. what can i do or expect!!!!! from newbee:o

dunstonh

Historically, it was very common for the home insurance to be taken with the mortgage payment. You still come across it from time to time. Nothing wrong with it from a compliance point of view although most have moved to have it debited by direct debit or annual cheque from your current account.

There is no mis-sale here.

KieranB

robertjonesuk wrote: »

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.

Thanks! This helped a lot.. She did need the Buildigns and Contents insurance but thought she was getting it free with the mortgage, which was not the case. They just added it to her DD.

I don't think she has a case really but the insurance expires this month so atleast she will get a saving from March onwards by switching.

Also, I didnt help her arranging the Mortgage because i have only in the last year or so started working in the finance industry.

Thanks for the responses everyone.

dreamer33

When we took out our mortgage we were offered the contents/building insurance too, we refused this as we already had good cover and it was cheaper.

Think we also had to pay a fee to the mortgage company for having cover elsewhere.

grahamm

I did one of Martin's Money Saving Quizzes and it mentioned that when getting Home Insurance you only need to get cover for the cost of rebuilding, not the sale value of the house.

I checked my insurance and for the last three years I've been paying for cover for the market value of my home, so (as well as changing my cover) I'm wondering if I've got grounds for a claim for mis-selling?

Anyone know?

dunstonh

I'm wondering if I've got grounds for a claim for mis-selling?

Did you invite the insurance company to do a survey of your house to work out the sum insured or did you tell them the figure to use?

grahamm

dunstonh wrote: »

Did you invite the insurance company to do a survey of your house to work out the sum insured or did you tell them the figure to use?

They didn't do a survey, so I presume I gave them the figure, but I don't recall anything ever saying that it was the rebuild value that was required.

I've got the insurance details from three years ago and the value down there is the price I paid for the place.

ADDENDUM: Ok, this is weird. I've just been playing around with the various "what is the rebuilding cost of my house" sites and, with the *same* details, I've got quotes varying from £113,000 to £207,000! :eek:

Now I think about £100,000 difference suggests there's something a bit screwy going on somewhere!

Anyone got any clues?

dunstonh

I presume I gave them the figure, but I don't recall anything ever saying that it was the rebuild value that was required.

Its normally referred to as the building sum insured. Its not their responsibility to get it right. It is yours.

ADDENDUM: Ok, this is weird. I've just been playing around with the various "what is the rebuilding cost of my house" sites and, with the *same* details, I've got quotes varying from £113,000 to £207,000! :eek:

Now I think about £100,000 difference suggests there's something a bit screwy going on somewhere!

Its impossible to set a rebuild value using online sites. Construction quality, accessibility, size and style all have an impact.

Most policies today for standard construction houses upto 5 bedrooms tend to be based on automatic cover upto £x amount (typically half a million or around that). The fact you are on an old sum insured policy either means your policy is old, you havent used a modern plan or your house doesnt qualify for that sort of insurance.

grahamm

dunstonh wrote: »

Its normally referred to as the building sum insured. Its not their responsibility to get it right. It is yours.

Hmm, I vaguely remember sorting out the policy over the phone, so surely they should have asked me for the rebuild value, not the price. I'm going to have to see if I can find the original documentation.

Most policies today for standard construction houses upto 5 bedrooms tend to be based on automatic cover upto £x amount (typically half a million or around that). The fact you are on an old sum insured policy either means your policy is old, you havent used a modern plan or your house doesnt qualify for that sort of insurance.

I've been trying to use Uswitch to find a better policy, but they ask for the rebuild value as part of the information which is why I'm trying to figure it out.