Home Insurance and mortgage lender

BelleBot

I'm trying to arrange home insurance for buying my first house. However the lender wants to be listed as an interested party on the policy and I can't find many insurers that offer this and offer accidental damage cover as well. It seems my only choice is to go with the building societies insurance provider. Also I'm having trouble going beyond the quote stage with a few insurers such as barclays because I only have a provisional exchange date and not a guaranteed exchange date. Is this a common problem? All I know is I can't exchange without insurance in place.

Can anyone recommend insurers that will allow me to add the lender as an interested party?

hcb42

All of them I would have thought, it's normal in buildings insurance.

You need to get a quote , decide who you are going with and confirm they will cover you and ring up as soon as you have an exchange date and take out the policy

phill99

Go to a local independent broker. The web based insurers are fine if you have a round peg going into a round hole.

QTPie

We used Directline.

We didn't specifically state that "our mortgage lender" had a financial interest in the property, BUT we obviously told them that we had a mortgage and with whom and that "financial interest" was clearly and specifically stated on the policy - I assume that it is fairly automatic.

kingstreet

Insurers selling via the internet route want quick and easy - apply, pay and issue business; not an application with no start date where an intent to cover letter needs to be faxed to the solicitor to satisfy the lender.

Broker cover is probably a better idea, as we've been handling it this way for years.

You'll get the option of accidental damage cover on buildings and/or contents and should find a better contract with "trace & access" cover included as standard.

It will be more expensive, as a result, but the quality and chances of a successful claim should result.

QTPie

Or just phone the insurer direct (who will issue the fax to you solicitor etc)? That is what I did with Directline and what you can do with other companies that also quote over the internet. It is no more expensive to do it by telephone and you cut out the middleman and more potential for misunderstandings and delays...