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Nationwide asking us to include them in insurance

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abillybob94
abillybob94 Posts: 27 Forumite
in House buying, renting & selling
Hey Peeps!

So in a clause of our Mortgage offer it states we need to include interest to the Mortgage Lender (Nationwide) in the Home Insurance policy.

We have taken out insurance with Admiral after calling Admiral on the Monday they said it was standard practice to include a clause in their insurance that states interest for the mortgage lender also. So Tuesday comes and we buy the insurance... Surprise, Surprise the mortgage lender isn't mentioned in any of the documents or even the small print.

Contacted Admiral today via email and they have stated a law was passed in 2012 meaning they legally can't add Nationwide's name to the policy or mention that the mortgage lender retains any interest in the policy and that they're sorry.

I've contacted a couple other insurers such as Lloyds etc and they also all say the same. So what are we supposed to do? We have just exchanged and will be completing next week and our solicitor has asked for proof that we have included Nationwide in our insurance otherwise he can't sign them off. We're really starting to panic as we don't know where else to turn! :(

Any help guys would be most appreciated!!!!
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  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    Tell your solicitor to tell Nationwide what you've told us - I'm sure it won't be the first time customers have pointed out that they're asking the (near) impossible.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    A law was passed my great white ****.

    The ABI agreement with the banking industry ended, that's all. Plenty of insurers are happy to add lender interest. It's only the flog it quick and cheap brigade from comparison sites who seem to have a problem with this.

    As an example, our L&G quote system allows us to enter lender name and account number when producing illustrations and issuing cover confirmation which meets the CML Handbook requirement solicitors need.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • HouseBuyer77
    HouseBuyer77 Posts: 961 Forumite
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    Both my mortgage lender and freeholder are mentioned as having an interest on my buildings insurance policy (it's leasehold but leaseholders are responsbile for arranging building insurance). This just involved asking my insurance broker to do so.

    May be worth phoning an insurance broker for a quote. They can ensure the interest gets added (explicitly say this is a condition of you taking up the policy).

    Cancel the Admiral policy. Ask for a full refund without administration fee as they gave you false information about the policy.
  • HouseBuyer77
    HouseBuyer77 Posts: 961 Forumite
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    Oh and as you've exchanged only cancel the old once the new has taken effect!
  • abillybob94
    abillybob94 Posts: 27 Forumite
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    Thanks peeps so it sounds as if Admiral are just trying to fob us off and lying about the law thing. Can anyone point me to an insurer or give me a name of insurer that they know will definitely name our Mortgage Lenders on the policy?

    It would be a big help! :)
  • G_M
    G_M Posts: 51,977 Forumite
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    1) ask Adniral to quote 'the law' that changed.

    2) refer that law to your solicitor and Nationwide

    Or do as Housebuyer77 sugested.
  • stator
    stator Posts: 7,441 Forumite
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    Cancel Admiral, take out another policy.
    AXA allow you to note the lender on the insurance documents.
    Changing the world, one sarcastic comment at a time.
  • pinkteapot
    pinkteapot Posts: 8,040 Forumite
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    Ironically, we're with Nationwide home insurance and they noted HSBC as our mortgage company on our policy. :)
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    As your solicitor is the one required to ensure you meet your lender's CML Handbook requirement (it's 6.14.2) when insuring the property, ask them for their views of insurers since the end of the ABI/Bankers agreement.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    kingstreet wrote: »
    As your solicitor is the one required to ensure you meet your lender's CML Handbook requirement (it's 6.14.2) when insuring the property, ask them for their views of insurers since the end of the ABI/Bankers agreement.
    The CML Handbook no longer refers to having the lender's interest noted (if you can see 6.14.2 you're looking at an out of date version) - I think the Nationwide is now unusual if it's still asking for it as part of their mortgage conditions.
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