Home insurance - not allowed to change insurer!

mama-monika

Hello
My home insurance is due renewing soon. Since 2004 we've been with Norwich Union, never made a claim so don't really know if they are good or not so good insurance providers. I was thinking of shopping around this year to see if we can get something cheaper.(money is very tight)
However, I found this letter from the company who own the Freehold interest on my house. It says:
... the Lease on this property requires the building insurance to be placed with an insurance company approved by the Lessor. The only company that will be approved by the Lessor is Norwich Union Insurance Ltd....

Has anybody come across this? Could you give me some advice? Does it mean I'm not allowed to ever change insurers? And what would happen if I did?

Thanks Monika

mattymoo

Normally the freeholder would insure the property and then pass the cost onto the tenant. That way, the freeholder knows their property is insured.

In your situation I think you need to speak to the freeholder and see why they have this stipulation. Not sure what they could do to you if you were to go elsewhere, providing the cover was equal to the existing NU cover. It could simply be down to the fact the freeholder has a previous good experience with NU and wishes to ensure his properties are insured through them. But as I said in the first para, why don't they arrange the cover themselves in that case?