C&G being weirdly tight about insurance....

neneromanova

Ok, so has anyone ever heard of cheltenham and gloucester being very tight fisted about which insurance policy we're "allowed" to take out. Apparently they want the building contents to be worth £170,000 which is £3000 more than we paid for the house when other companies say that it'll only take £120,000 to rebuild it. Also that we HAVE to be covered for Flood (Fair enough), volcano eruptions, tornados, alien abductions etc. just stupid things like that that will NEVER happen.

Also we HAVE to have accidental contents insurance which pushes our premium up half so we end up paying over £40 a month!

This all came up the day before the mortgage company would release the funds to the solicitor so he went to lloyds (Who we got our mortgage through) just to be able to buy the house.

now to change insurance companies we have to ring up C&G and ask permission to go on the policy we have found which they'll most likely say no to...

not exactly very MSE!

Anyone heard of that? OH is worried if we just change insurance they'll take the mortgage away (Well atleast take the house away to cover it as we can't afford the mortgage in 1 go.

dunstonh

Ok, so has anyone ever heard of cheltenham and gloucester being very tight fisted about which insurance policy we're "allowed" to take out.

They used to be many years ago. However, now they only insist on being noted on the policy and that the sum insured matches their requirement (on new mortgages).

Also we HAVE to have accidental contents insurance which pushes our premium up half so we end up paying over £40 a month!

That isn't a normal requirement of the C&G insurance list.

I suggest you raise it higher up the line.

neneromanova

yeah I did find it weird about the contents insurance. What do they care if my sofa breaks. It's not going to damage the house.

Thank you for that.

lisyloo

Also we HAVE to have accidental contents insurance

Someone is trying to con you here and that's disgusting.
You contents are absolutely nothing to do with a mortgage company.
If you are sure you haven't misunderstood then I would personally be minded to make a formal complaint about this behaviour which is trying to con you.

There obviously have an interest in your buildings being properly insured as they have loaned you money secured on it.
But you contents are nothing at all to do with them.
You can go uninsured on your contents if you chose. That's not adviseable but the point is that it's your choice.

On the assumption you haven't misunderstood then their behaviour is disgusting.

neneromanova

lisyloo wrote: »

Someone is trying to con you here and that's disgusting.
You contents are absolutely nothing to do with a mortgage company.
If you are sure you haven't misunderstood then I would personally be minded to make a formal complaint about this behaviour which is trying to con you.

There obviously have an interest in your buildings being properly insured as they have loaned you money secured on it.
But you contents are nothing at all to do with them.
You can go uninsured on your contents if you chose. That's not adviseable but the point is that it's your choice.

On the assumption you haven't misunderstood then their behaviour is disgusting.

It's not lloyds saying this though, just some person at C&G. The guy from lloyds thought it was rediculous.

I've also just found the list of what they want the house covered against. Are you ready for this...

* fire;* lightning;
* aircraft;
* explosion;
* earthquake;
* storm;
* flood;
* escape of water or oil;
* riot;
* malicious damage;
* theft or attempted theft;
* falling trees and branches and aerials;
* subsidence;
* heave;
* landslip;
* collision;
* accidental damage to underground services;
* professional fees, demolition and site clearance costs; and
* public liability to anyone else

lisyloo

So which of those is it you think will NEVER happen to you?

Quentin

Those risks are normally covered by buildings insurance and not specific to C + G! (All lenders would want the property to have this insurance cover)

Have you seen it in writing that it is a condition of the mortgage that you must take out this contents insurance? There looks to be a misunderstanding. (They may have been giving you (good) advice about taking out contents insurance!)

neneromanova

lisyloo wrote: »

So which of those is it you think will NEVER happen to you?

It's not that i don't think they'll ever happen it's just crazy the stuff that needs to be covered.

So how do I find out what they cover before i take the policies out?

Quentin

You can usually read insurers policies/cover on line.

Or visit a local broker.

But those events in your recent list are for pretty standard cover. Your original grumble that they asked you to get cover for alien abduction looks to be nonsense!

lisyloo

it's just crazy the stuff that needs to be covered

When you're lending the money, then you get to decide what you want covered and what you don't.
It seems liike a pretty standard list.

So how do I find out what they cover before i take the policies out?

You could look at the policy (most websites have a pdf to download).
Otherwise you could tell lloyds you are considering the policy with ABC insurer and ask them if it meet their requirements. That might be easier.

I am not sure where C&G come in on your lloyds policy although they are in the same group.

dunstonh

I am not sure where C&G come in on your lloyds policy although they are in the same group.

All Lloyds bank mortgages are branded C&G and the admin handled by C&G.

Someone at C&G is wrong. Hence the need to speak to someone else to get this sticking point sorted.