being charged for taking out own home ins

rabbit9400

When I changed my mortgage three years ago ( to the Ipswitch bs)I declined there buildings and contents ins because of the high cost, so I stayed with the insurer I had been using. The Ipswitch after some protest from myself charged me £60!! for what they called administration costs. My question is, was this legal or a reasonable charge and can I claim part/all of it back? Thanks Paul.

homer_j_3

Yes it is quite legal for lenders to do this - they have to ensure that their asset is significantly covered for insurance. They will have addittional work to check that not just on completion but potentially every year when it is due for renewal.

That said a lot of the bigger lenders normally charge £25 and you can often get this paid for by the insurer if you mention it.

We are going into a claim culture explosion these days and whilst I think its good that consumers (and that includes me too) are becoming more aware of their rights and that we are always looking to save money in anyway possible it is quite legal for businesses to make a profit.

rabbit9400

I've no problem with companys making a reasonable profit, but £65 I think is taking the mick!!
I also understand what you are saying about a claim culture but surely if people are being ripped off they have a right of address.

Noz

Well you can exhaust Ipswich BS's complaint procedure to see if they will refund the charge as the simplest solution, but as homer_j says the charge is quite simply legal.