House Insurance - I own but dont live there!!

abc123456

If anyone can advise on a quandry I have, I would be most grateful.

Basically, my step-father lives in a house following the death of my mother. The house is owned by us, 3 sisters and a our step-brother.

The house is owned outright, ie no mortgage. As per an original agreement, my step-father lives rent free,

My step-father recently bought house insurance, but on telling the insurance company, the house was actually in our names, they nulled the policy, saying that as he was not the owner, he could not be covered.

My solicitor suggested Landlord Insurance for the building and the contents insurance could be bought by my step-father, however, the cheapest Landlord insurance is about 10 times what the contents insurance would be.

Is there any way round this problem? My step-father is just looking for a normal priced house insurance policy.

I thought that I could buy a policy as policyholder, ie owner of the property, but most of the policy conditions I see, mean that I have to be permanent resident there!

Any thoughts? Thank you.

FutureGirl

I think the best way is to get some quotes for home insurance online, and then phone the insurer, and advise them of the situation. Something like this is easier dealt with over the phone than online. That way the insurer can tell you whether they will still offer a policy even if you don't live there, and if they will how it would affect the quote.

Or take out a landlords insurance policy.

jaybeetoo

You can take out landlord buildings insurance and your step father can take out contents insurance.

Everynamestaken

We are in the same situation. At first not many insured us but then we explained the situation and RSA insured us on 2 different policies.
We then found it cheaper with More than. This year however, we have just done it separately and got buldings with one company and contents with another. If it was straight forward, it would be almost half the price for both buildings and contents in the same house.

Do online chat and explain it all thoroughly.

caliew

Hi, I have worked in insurance for a number of years and I have just left due to childcare reasons. Do you have a tenancy agreement in place with your step father? Are you on the title deeds of the property? If you are on the title deeds of the property then the buildings insurance could possibly be set under your name as policy holder however the questioning will ask who lives at the property you would need to note your step dad as person who lives there not you as any information keyed incorrectly could possibly invalidate the insurance and if your step dad has the tenancy agreement in place then he could possibly set up his own individual contents policy under his name.

It is best to phone or web chat the companies you are interested in and discover if a standard buildings policy can be set in your name as policyholder (if you on title deeds) with stepdad living there and the contents to be set in stepdads name as policy holder (with tenancy agreement in place).

Hope this helps.

abc123456

Hi Caliew, thank you very much for your reply.

There is no tenancy agreement in place. It is just in my deceased mother`s will, and in prior agreement with my step-father, that he lives there rent free until he passes.
I am presuming the title deeds are in my, and my siblings names....I am not certain.

I am in the process of contacting some insurance companies to ask.
Many thanks.

dacouch

Try a local broker (Avoid Swintons), also try Aviva preferably through a broker.

Your first port of call should be to ask the Insurer or your own house

abc123456

Following clarification with Solicitors, I find that we are not actually owners of the house.....the house is "in the hands of the executors, and will be until the death of my step-father".
The executor is my step-father.

Further clarification with insurance companies reveal that underwriters will only provide buildings cover for the owner or "executor".

Not so simple to just declare my step-father as owner/executor,,,yes, but premium is still nearly 3 times the price.

Absolutely diabolical rip off by insurance companies as the risk is the same as it always has been. Nevertheless, he bought the insurance and had to declare that an "executor" was the owner (the fact that he is the sole executor made no difference), and that he was actually a "rent free" tenant.

No doubt there are many householders in the same boat as my step father at the mercy of insurance companies !

jediknight49

I am in a similar situation.

I own the property (mortgaged), but parents live rent free.
For years I have had both buildings & contents in my name, but 2 years ago I moved out. I never bothered to inform the insurers that I do no live there anymore.

When doing some compare quotes for this year, I noticed the terms / comments regarding "must be occupied by you." Never really put much thought into this, but it got me thinking so I decided to shop around for separate policy's. The costs are 3 to 4 times higher than having just one combined policy, which is scandalous.

I am currently insured through Swinton, but they are expensive this year, before I even try and get them to quote separate policy's.

Looks like some internet trolling and phone calling is required to get this sorted.

abc123456

Thanks for that jediknight49.

I had many days trolling the internet and making calls directly to companies. Aviva appeared to be the most sympathetic and cheapest, but still almost 3 times the price as the previous year.

bouncydog1

We own another property occupied by a family member. No rent is paid and they are not a tenant. They live there on a goodwill basis. We spoke to our property insurers and they have covered the property at normal rates noting the occupancy arrangement o n the policy. Interest of relative is noted for a certain value on the contents which are also insured by us.