Two mortgage payment protection policies

Ktb299

When going through my bank account I realised I had two mortgage payment protection policies (to cover one mortgage) one with the halfax for 12 years and one with Santander for 9.

I have now cancelled both as I get 12 months full paid sick pay and if I was made redundant I would have about 8 months take home pay, in which time I would hopefully have found another job.

Now neither of the policies were mis-sold and I was going to cancel one of them 9 yeas ago when I took out the Santander one but never did.

My question is would both of them paid out in full for a claim? (so I would get two mortgage payments for each month) or would they have both only paid a proportion of the claim like other insurance products?

I know if it is the second I should be able to claim back part of the premiums from both companies. Under other types of insurance you are only able to insure an object once to its value and if you have insured something twice both companies take a proportion of the risk and pay out a proportion of the claim but I can not see anything in any policy documents for the payment protection.

I don't want to approach the companies unless there is a chance as it's my own fault I have been paying twice all this time.

[Deleted User]

Ktb299 wrote: »

I should be able to claim back part of the premiums from both companies.

Only as a goodwill gesture.

It was your own fault that you failed to cancel one insurance and started another.

Nearlyold

You need to check the policy wording to see what the situation is regarding whether they would have both paid out.

-taff

Are you single? Because if you aren't, how would your partner pay the mortgage if you died?

dunstonh

My question is would both of them paid out in full for a claim? (so I would get two mortgage payments for each month) or would they have both only paid a proportion of the claim like other insurance products?

First, I am going to assume that when you refer to mortgage protection you mean MPPI and not life assurance. The term "mortgage protection" is not defined and is used by any insurance that can cover a mortgage. If it is life assurance then what you are saying is not applicable.

You can have as many as you like as long as the total amount does not exceed your income. However, some lenders own MPPI product will only cover their own mortgages. Not those of third parties.

Agricolae

This is potentially tricky. You will need to find your terms and conditions to see what they say.

If your first policy was not transferable to a new mortgage then you've been paying for nothing essentially. Contact the insurer and ask if they will refund the premiums (they might not).

If the policy was transferable to a new mortgage (with another provider) then if Santander had simply sold the new policy without checking if you already had cover in place then that could have been a dodgy sale. However you've said you knew you needed to cancel it but forgot, so it seems you were going into things with your eyes open and made a mistake.

That's unfortunate, but it means contacting the previous insurer is your only real option, and then only if the original policy couldn't be transferred.

Nasqueron

Do note that unless you are a public sector worker, no redundancy package is guaranteed, any firm could do under and then you'd get minimal pay-offs, there is no contractual agreement you would get that money either (if there was it would be considered a taxable benefit).