Mortgage Requirement - Index-linked Home Insurance

user1977

kingstreet said:

I think it is suggesting the renewal should be offered with an RPI increase in the sum insured each year.

Hmm. I doubt any insurers could really say more than that's their current practice - there's no obligation on them to even provide cover for subsequent years. 

Thrugelmir

Most domestic house insurance policies are index linked on a monthly basis for rebuild costs. Might not be apparent at first glance. More than likely buried in the small print. 

dunstonh

tbarnes95 said:

kingstreet said:

IIRC it's CML requirement 6.14.2.

The policy conforms to all requirements set out in clause 6.14.2 of the Council of Mortgage Lenders Handbook part 1 and total sum insured under the buildings and/or contents section(s) of the policy is adjusted where appropriate to take account of inflation (‘index linked’) annually.

So in theory all home insurance policies are index-linked as they to comply with this standard?

Where a sum insured is given, then yes.  However, with automatic sum insureds upto £x, then not necessarily.

I'm with Santander and it was not an issue.  The sum insured was set to the valuation figure (not an automatic sum insured policy) and the conveyancor was fine with it, as was Santander.