buildings insurance - must be index-linked?

free4440273

hi, could somebody kindly help me with a query. i have a mortgage offer from bristol and west mortgages. on the offer of loan form it stipulates that whoever i get my buildings insurance policy from, it must be index-linked and they [bristol and west] must be named as a joint insured party. pardon my ignorance, what does this actually mean; is it uncommon; will it mean me paying far more for buildings insurance? i was thinking of going with nationwide buildings insurance. thanks as always

dunstonh

Most "sum insured" plans are index linked. If not all. Although with an increasing number being automatic sum insureds, that point is invalid and wont worry the lender providing the maximum is not close to or below the required sum insured.

Lenders often want them named on the insurance and all insurance companies cater for this.

free4440273

dunstonh wrote:

Most "sum insured" plans are index linked. If not all. Although with an increasing number being automatic sum insureds, that point is invalid and wont worry the lender providing the maximum is not close to or below the required sum insured.

Lenders often want them named on the insurance and all insurance companies cater for this.

thanks so much, very kind sir. my buildings insurance will be 'unlimited' with nationwide (they provide this by default). the property i am buying is £435k; the insurance the survey has suggested is £250k. will this be satisfactory to my mortgage provider, bristol and west? thanks

dunstonh

Be wary. Many "unlimited" plans are not actually unlimited but have a maximum in the small print. Usually around the £500k mark. With £250k required though, you should be ok.

There seems to have been a number of people say they are going with Nationwide recently. House insurance pricing is a regional thing but I just ran off a quote and found them to be more expensive than what could be arranged by nearly any broker out there. It appears that nationwide increase the excess and lower the contents sum assured down to give them a lower "initial" figure. This is quite a common tactic used by some. However, once you balance the figures on a like for like basis, they were still good but could be beaten.

free4440273

dunstonh wrote:

Be wary. Many "unlimited" plans are not actually unlimited but have a maximum in the small print. Usually around the £500k mark. With £250k required though, you should be ok.

There seems to have been a number of people say they are going with Nationwide recently. House insurance is a regional thing but I just ran off a quote and found them to be more expensive than what could be arranged by nearly any broker out there. It appears that nationwide increase the excess and lower the contents sum assured down to give them a lower "initial" figure. This is quite a common tactic used by some. However, once you balance the figures on a like for like basis, they were still good but could be beaten.

thanks for your all your help and advice today