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Home Insurance and Divorce - Hastings cancelled policy

I'm going through a divorce at the moment and not living at the marital home as my wife is living there and I moved out. I've been continuing to pay the mortgage and the property has now sold so is going through the conveyancing process. I auto renewed the home insurance in August with Hastings Direct, unfortunately my soon to be ex-wife sent the policy back via Royal Mail saying I was 'not known at this address'
Hastings have today cancelled the policy despite me calling them and explaining the current situation and advising that I would like to keep the home insurance policy until the property had sold to comply with my mortgage stipulations. Hastings say as I dont live there they won't insure it, I have emailed my ex asking her to insure the property asap but I'm curious to know whether Hastings are actually within their rights to do this, they've also advised me I have to pay a cancellation fee and the policy costs due to the day its cancelled.
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