Buildings&Contents for underpinning & lodgers

Money_Saving_Matt_K

Hi

I'm a first time buyer and would really appreciate any help people can give here. I need some buildings and contents insurance but there are some factors which make my requirements non-standard:

1. The house was underpinned about 20 yrs ago, although this is still under guarentee for another year.
2. I will need to account for lodgers I will have living with me.
3. I was advised by my mortgage broker not to tell the lender, Abbey, about my lodgers. I am proposing to tell them once I move in.

I am not clear on the best route for finding the cheapest policy in my circumstances.
Additionally I am concerned that once I find a policy that issues may occur if Abbey or the insurers are aware that they both hold different information about the lodger situation.

Can anyone give me some advise here.

Many thanks

FlameCloud

Are you wanting to not tell Abbey (the mortgage lender) or the insurer about the lodger?

I cannot emphasise enough do NOT consider this with the insurance. A policy will almost always be voided for undeclared lodgers as it significantly changes the underwriting risk of a policy and it will need endorsements applying. It ranks just below outright fraudulent claims on the list of things likely to go for a voidance.

In either situation, a policy with lodgers on it will probably have an exlcusion from certain types of theft and cost more. Your going to have to ring around for this one I'm afraid.

EmberJDIns

If not already done so, you should approach the insurers of the current owners for the property, due to the underpinning. You must also disclose that you will have lodgers, as this is a material fact.

roses

Liverpool Victoria is the only company that gave me a reasonable buildings and contents insurance with a lodger. They were about half the price of everyone else.

Money_Saving_Matt_K

Hi FlameCloud

I want to tell both the insurer and abbey about the tennants. At the moment the mortgage broker said not to advise abbey until I have completed, which is fine as I don't have any lodgers lined up yet anyway. I think it would be wise to tell the insurers now so that i have a policy in place which will allow me to add lodgers once I find them. I just hope that abbey will not see the policy and think that i have lied to them in my application. I think that I only need to show the insurance policy to my solicitor so hopefully i will not have that problem.

Thanks for your advise.

Money_Saving_Matt_K

roses wrote: »

Liverpool Victoria is the only company that gave me a reasonable buildings and contents insurance with a lodger. They were about half the price of everyone else.

Thanks for that tip roses. got a good online quote from them. will just follow up with a call next week so make sure they are happy with the underpinning.

Cheers

FlameCloud

Money_Saving_Matt_K wrote: »

Hi FlameCloud

I want to tell both the insurer and abbey about the tennants. At the moment the mortgage broker said not to advise abbey until I have completed, which is fine as I don't have any lodgers lined up yet anyway. I think it would be wise to tell the insurers now so that i have a policy in place which will allow me to add lodgers once I find them. I just hope that abbey will not see the policy and think that i have lied to them in my application. I think that I only need to show the insurance policy to my solicitor so hopefully i will not have that problem.

Thanks for your advise.

It depends on what links the insurance has with the bank. You say you think you only have to show it to the soliciter- are you certain about this (I havent gotta clue, just asking!) It the mortgage company do see it they probably would ask some questions.