Buildings Insurance - £25 admin fee for own insurance

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
3 replies 489 views
cwillniccwillnic Forumite
5 Posts
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
I thought I had read somewhere that mortage companies who charge a £25 'admin fee' for customers who take out their own insurance, were acting against good practice. In my case, Bristol & West have insured two buy to let properties for 12 months through their own company Zurich. I have found similar cover with another insurance company at lower cost. Suddenly, after 2 months, although Bristol & West were informed immediatley, Zurich have decided to ask for a £25 fee for moving my cover to another comapny. Is this legal, or just a try on? Has anyone had a similar experience, I know some insurance companies offer to pay this fee if you change insurance companies.

Replies

  • AstarothAstaroth Forumite
    5.4K Posts
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    In theory the fee is for the mortgage lender to assess that the new insurance is of adequate cover and no terms that they are unhappy with.
    All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
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  • devon-gnomedevon-gnome Forumite
    279 Posts
    100 Posts
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    Hi
    my mortgage company; Bradford and Bingley, did the same to me when I changed the buildings insurance company. They did this for the first year only but I suspect that if I change again, they may charge me another £25.00.
  • wardinhowardinho Forumite
    16 Posts
    Speak to the new insurer as it is likely they will refund up to £25. You would usually pay the fee and send the receipt to your new insurer. I cant speak for all insurers but I would agree to this without questions
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