Paying double Buildings Insurance

london75_2

Hello, I hope you can help me..we had to sign up for a Buildings insurance when our mortgage was approved for our new flat.

Once we'd moved into the flat, we found that the service charge already included a portion of buildings insurance which meant we were paying it twice. I contacted the insurance we signed with when we got our mortgage to cancel it and have the money reimbursed. They told me that once I had filled in the appropriate forms, they would only reimburse half of the payments and that the other insurance should settle the other half.

Is that how it should be? The original insurance (the one paid via service charge) has been in place for years, I don't see why they should have to reimburse us for half... I think the second insurance should pay back everything.. Please help! What (if anything) can I rightfully claim back?

huckster

Yes normally for dual insurance it would be a 50/50, however, you mortgage company should have realised there was a block of flats insurance. Therefore, once they are supplied with proof of this long standing insurance on the flat they should refund 100%. This is on the basis that the flats insurer will not refund anything. They insure the whole block for a large sum insured, with each flat owner paying a portion within the maintenance fee. So why would they be willing to refund 50% of that small portion related to your flat.

Go back to the Mortgage companies insurance department and see if you can speak to someone with a little more commonsense and experience.

cogito

huckster is exactly right. You only have to stop and think for a moment to realise that it simply isn't possible to insure one flat in a block.