Esure refuse to add mortgage interest

Tumpty

I have today tried to add my new mortgage company to my existing esure buildings policy as an interested party. Esure refused to do this and said my mortgage company (Yorkshire BS) should contact the British Bankers Assoc. After a number of phone calls including me ringing the BBA who knew absolutely nothing about what esure had told me I have had to cancel my policy with esure and find alternative insurance in order to fulfil the requirements of the mortgage. I had paid my policy with esure in full and as their cancellation policy cost more than the remainder of the value of the policy couldn't even get anything refunded. Esure stated this is common practice with all insurers? Is this really the case as my new insurers stated it was common practice! Has anyone else had a similar problem and should I try to get some money back from esure?

dunstonh

Esure stated this is common practice with all insurers?

Not all but some.

Has anyone else had a similar problem and should I try to get some money back from esure?

They havent done anything wrong. Some will allow the addition of a lender. Some will not. Some lenders require it as a condition. Others do not. You just have to match the product to your requirements. If your current product doesnt do it then you buy one that does.

Tumpty

Thanks for the reply. Obviously one to put down to experience. Never had cause to do this before so didn't consider it at the point of purchase.

kingstreet

The agreement between the BBA and the ABI ended, so the ABI is claiming insurers no longer have to note lender interest, nor inform the lender of a claim etc.

However, the lenders disagree and we currently have a free for all.

I find that the "broker" type firms have carried on doing it, as they have the systems in place and can accept a pending application, send details of cover and CML compliance to solicitor in advance of exchange of contracts; while the internet-only brigade who want you to sign up, go on risk and pay on the day, won't co-operate with lender requirements.

System

I've done similar with AXA and Aviva, and each noted the additional interest of a third party without any quibble.
The first was a company property sold to a new freeholder, the company retaining a long insuring and maintenance lease. The other was my parents' house partly transferred into trust on my father's death.

It never occured to me that there might be any problem. The obligation was simply to notify the insurance company of the additional interest. I kept a record of the notification. They can't refuse to accept a notification of a fact ?
It would be like telling them of an incident and them refusing to believe it.

Tumpty

Thanks for the replies. My mortgage company wanted proof of the noted interest but as esure wouldn't accept this they left me no choice but to swap insurers. The new company were absolutely fine with making a written note.

rs65

Clifford_Pope wrote: »

They can't refuse to accept a notification of a fact ?

It's more than just notifying them. Some lenders want their interest noted on the policy which requires the insurer to notify the lender if cover is cancelled.