mortgage insurance policy not to exceed set limit?

chelseachampions

Evening all,


I'm a couple of days from completing on our house move. I was sorting out the buildings insurance today and to my error missed a clause whereby the lender states "the excess on your policy does not exceed £1000 for subsidence, landslip ..etc". Thankfully our solicitor has pointed that out to me this evening that Subsidence has a total value of £1500 - so hopefully I can rectify it - although Admiral want 50% of the yearly rate to change it lesson learned.


Out of curiosity why do the limit the voluntary excess? Given it's quite a clear clause (that I missed) I presume it would be a show stopper?


I will recitfy it tomorrow morning but was interestedin finding out the answers. Thanks

foxy-stoat

I do not understand your post - not sure why your solicitor has pointed out clauses to your buildings insurance and not sure what you they mean when they say "Subsidence has a total value of £1500" - subsidence claims can run into the 10's of thousands if not more and the excess is normally £1000.

Out of curiosity why do the limit the voluntary excess? Given it's quite a clear clause (that I missed) I presume it would be a show stopper?

What does that mean? You cannot have a voluntary excess of more than £1000 as the insurer/lender wouldn't want to risk you not being able to pay more than £1000 if there was an £80,000 subsidence claim and you having to cough up say £7,500 for example.

Dime_Bar

[lender states "the excess on your policy does not exceed £1000 for subsidence, landslip ..etc".]

It's the lender that is stating the maximum not the insurer

davidmcn

foxy-stoat wrote: »

I do not understand your post - not sure why your solicitor has pointed out clauses to your buildings insurance

Because they're checking whether the policy complies with the lender's requirements.

and not sure what you they mean when they say "Subsidence has a total value of £1500" - subsidence claims can run into the 10's of thousands if not more and the excess is normally £1000.

The OP means the excess for subsidence is (or was) £1500 on their policy.