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Ridiculous Flood Re situation
marmitemum
Posts: 74 Forumite
This is a rant more than anything. My daughter and her husband are first time buyers - they have a confirmed mortgage offer which they’ve accepted, searches and enquiries all done, all parts of the chain are ready and exchange of contracts is imminent. It just remained for them to arrange their building insurance. They knew the property was in a medium flood risk area (which has never flooded, no claims made) and that they’d need to approach companies in the Flood Re scheme rather than going via comparison sites,
Out of 5 companies they picked to approach, three quotes and two refused on the grounds of it being a flood risk area. What has annoyed me is that one of the companies that has refused to quote is their mortgage lender. I appreciate that just because a company is in the Flood Re scheme it doesn’t mean they have to quote, but it seems rather wrong to me that they would give a mortgage on a property hut not insure it.
Does anyone else find this unreasonable?
Out of 5 companies they picked to approach, three quotes and two refused on the grounds of it being a flood risk area. What has annoyed me is that one of the companies that has refused to quote is their mortgage lender. I appreciate that just because a company is in the Flood Re scheme it doesn’t mean they have to quote, but it seems rather wrong to me that they would give a mortgage on a property hut not insure it.
Does anyone else find this unreasonable?
0
Comments
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No, not really. Different risk appetites for different areas.
They'll be comfortable of getting a return on the mortgage, but less so on insurance where the losses can be dramatic.0 -
Who is the lender?
I ask only because a lot of banks home insurance aren't underwritten by the bank, they sell the 'brand' to a Broker.
Have you tried putting the details into a price comparison site? Flood Re is a couple of years old now, I'd imagine it's built into insurers algorithms to rate and quote automatically.0 -
They should speak to a local broker. The broker will know who will and won't insure in that area - it also gives them a certain amount of security if the broker arranges the wrong cover (which is rare).0
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