Home Insurance Question for first time buyer

mjgreen

Hi all,

In a few weeks we should be completing on our first house. We have secured a mortgage with the Post Office and as you would expect, require us to have home insurance.

However, as part of the t&c’s, they want us to add the Post Office as a joint policyholder. Is this usual practise?

The reason I ask is as I have been on confused.com, Tesco Compare etc to check prices and at no point have I been asked to provide my mortgage company details for the policy. The only joint policy I seem to be able to have is if I want to add my wide etc.

Is this usual practise to add the mortgage company as a joint policy holder? Am I going to have to phone up insurance companies as the usual online forms don’t seem to have a place for me to add the mortgage company?

Thanks in advance

G_M

This is normal. Imagine if you don't pay your mortgage and do a runner. The PO starts to repossess your house but meanwhile it burns down. They want to be able to claim!

Usually during the insurance application process somewhere you will be asked if there are any other parties with an interest in the house - that's where you put the PO.

It will not come up on quotes, only once you are actually applying.

mjgreen

Ok great thanks, thats very useful....I forget that after you do your searches on Confused/tesco compare etc you then have fill out some more details when you actually apply.

So as this is normal practise, it wont effect the quotes I have recieved from the search engines?

cattie

Never heard of this before but all my mortgages have been via one company; the one that claims to give you Xtra & my buildings/contents insurances through the same company as it's always been the cheapest I can find.

G_M

it wont effect the quotes I have recieved from the search engines?

Correct.

my buildings/contents insurances through the same company as it's always been the cheapest I can find.

Unusual! Normally a mortgage provider's insurance costs more as they rely on peoples' inertia to take it as it's easier. You've been lucky!

If the OP shops around and does find a cheaper one, the mortgage provider will at some point want confirmation that insurance has been bought and that they are named.

Richard_Webster

Post Office don't lend money - they just act as front for Bank of Ireland trading as Bristol & West Mortgages. They prefer to be joint policy holders but will accept their interest being noted on the policy.

mjgreen

Richard_Webster wrote: »

Post Office don't lend money - they just act as front for Bank of Ireland trading as Bristol & West Mortgages. They prefer to be joint policy holders but will accept their interest being noted on the policy.

Hi Richard, yeah I realise the PO is just a front for B&W/BoI.

Yesterday I did a quote with Direct Line as they had the 50% off and I understand they are not on any of the comparison websites...>I was not asked for my mortgage companies details at any point :-/

can you few other people confirm that its nto a problem to add the mortgage company as a joint policy holder? I am a bit worried now

caljoemor

It is common practice for mortgage lenders to be noted as interested parties on an insurance policy or be joint policy holders.

Your quotes should not be affected as it has no effect on the policy it is to protect the banks loan.

mjgreen

caljoemor wrote: »

It is common practice for mortgage lenders to be noted as interested parties on an insurance policy or be joint policy holders.

Your quotes should not be affected as it has no effect on the policy it is to protect the banks loan.

Hi Joe, yeah I do understand the reasoning etc....I just have not filled out a quote yet that has allowed me to name the mortgage lender on the policy

caljoemor

mjgreen wrote: »

Hi Joe, yeah I do understand the reasoning etc....I just have not filled out a quote yet that has allowed me to name the mortgage lender on the policy

You won't do it on the quote forms but on the application they should ask for interested parties etc.

If not you can ring them and ask them how you go about adding the PO and again it should not affect the quote.

If the PO have this condition in the mortgage offer your conveyancing solicitor should pick it up. They will then ask you to confirm with the insurance provider or contact them directly. I have worked in conveyancing and we had to do it regualarly when people didn't use their mortgage provider for the insurance.

G_M

mjgreen wrote: »

Hi Joe, yeah I do understand the reasoning etc....I just have not filled out a quote yet that has allowed me to name the mortgage lender on the policy

Thought I'd covered this 2 days ago:

"Usually during the insurance application process somewhere you will be asked if there are any other parties with an interest in the house - that's where you put the PO.

It will not come up on quotes, only once you are actually applying. "