FTB - 2 small questions

nonnatus

Hi, PLease move if this is in the wrong place.

I'm buying my first house 50/50 with my Mum next week. We have 60% deposit, 40% mortgage and very happy with all that.

Used a private Broker who then suggested we used his contact at HIGOS for a buildings and contents quote for new property.
Agreed and got a quote for one year costing £463.00
Imagine house sale price was £400k, house only a few years old and survey shows total re-build cost to be around £350k. Higos offering a MINIMUM rebuild insurance value of £500k.

I thought that was a bit high so looked around and got a similar quote (both buildings and contents) for £161.00 With Legal and General. Only difference is that L&G offering a MINIMUM rebuild insurance value of £600k, which is way more than we need.

Excesses and the rest are all the same. Would I get in any trouble with rebuild values being so far out if I took the much better value L&G policy? If NOT, it really shows how it pays to shop around! And surely as my Broker, he should be bringing me GOOD VALUE stuff!!!


Secondly, if you followed all that!
Mum will be moving into the new house with me and sharing all the bills, including Council tax. She is still trying to sell her bungalow though (been on sale for 5 months, plenty of interest). She continues to pay Council Tax on the Bungalow. Up to now she was getting the 25% discount for single occupancy. Now that she won't be living there at all, will she pay a lesser amount? Shouls we inform the Council and ask for a further discount of some kind?

Thanks for helping...

kingstreet

How much contents cover have you stated in your quote request? Any personal possessions cover, ie high value items you want to cover away from home? You say your broker has quoted buildings and contents cover, but you've only mentioned the buildings insurance?

What is the rebuild cost of the property? £350k? How many bedrooms? Year of construction? Property type - flat, terrace, semi, detached?

Some insurers use a blanket sum insured, based on the number of bedrooms. If they offer £500k cover, the premium is based on the number of bedrooms in the house, not the sum insured.

What is the postcode? What excess are you using for buildings insurance? What excess are you using for contents cover? Any accidental damage cover?

Do you understand the term "trace and access?"

Any claims in the last five years?

It is very difficult for you to obtain quotes to compare them with what a broker might obtain for you. Please pay special attention to excesses, averaging, item limits, trace & access and the insurer's claims stats.

Paying for the wrong cover with the wrong insurer is what gives the industry a bad name.

Finally, there is an unoccupied property council tax discount for a period. Contact the local council for details.

G_M

Some insurers take the 'rebuild' value you give them, and base the premium quote on that.

Some give blanket cover up to a certain amount - ie £500,000. So if the house burns down, they will pay up to that amount to rebuild thehouse. Provided the actual rebuild cost of the property is lower than the figure given by the insurer, you are OK.

As Kingstreet says, the other aspects to look at are the excess (eg you have to pay the first £100, or 200, or 500 of each claim); and the things they will pay out for.

Council tax rules are changing I think so npot sure what you pay for an unoccupied property - ring the council and ask!

Beware her insurance too - All buildings insurance will have a maximum period the property can be 'unoccupied' (as it is more likely to be burgled, or have damage caused un-noticed water leakes) this can be 30 days, 45, 60 so check HER bungalow will still be insured once she moves out. It may be OK if she sleeps there once a week or something, but you have to read the policy!

dimbo61

Council tax has changed so you can now only have one month council tax free if property is empty and unfurnished, you pay full council tax if property is empty and furnished !!! so better for your Mum to say she is still living in her bungalow and pay 75% while you live in your house and pay 75%.
once house is sold then she can move in with you and pay 100% Council tax

dimbo61

buildings and contents are just that and if the level of cover is the same then go with L&G and save yourself over £300 which you might need to pay all the council tax for 2 properties