"Mortgagee Protection Clause"

Tom1965

Hi
Have had a mortgage offer from Virgin and they specify that the home insurance policy must contain a "mortgagee protection clause". I have contacted a few of the cheapest / well-known insurance companies, and they have not heard of a "mortgagee protection clause". Has anyone else heard of this? Or is this an unreasonable way of getting us to buy insurance from Virgin Money - which was three times the price of the best quote I had by the way. Help!
Much appreciated

ACG

Do you mean they just want to be named on the policy as a beneficiary?
If so all/most insurers should do it.

On a side note, cheap insurance could be a false economy should you make a claim. I understand buying a house is expensive, but spending an extra few quid a month could be the difference between getting a payout and not.

dunstonh

Has anyone else heard of this? Or is this an unreasonable way of getting us to buy insurance from Virgin Money - which was three times the price of the best quote I had by the way. Help!

Many lenders like to be named as mortgage company on the buildings insurance. It used to be that virtually all of them did. However, it is far less common than it used to be.

Virtually all insurers will note the lender on the policy. What is probably happening is that what Virgin call it is one thing and what the insurers call it is something else. When you buy the insurance just ask them or complete the section where it asks for mortgage lender.

I have seen posts on the forum before that some of the budget or less well known providers wont offer this facility. However, you probably wouldnt want to be insured with them anyway.

Tom1965

Mmm... I rang up Churchill and they didn't know what it was. Two other reputable firms, both said on their online chat that it is not included.

kingstreet

I suspect it means in the event of the insurance being cancelled or lapsing, or in the event of a claim, the insurer will notify the lender to ensure it is aware of what is taking place.

It is usually known as 'noting the lender's interest'.