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Mortgage provider seeking details of home insurance provider.

  • 18-07-2017 3:08pm
    #1
    dense
    Closed Accounts Posts: 2,175 ✭✭✭


    Hi there. Is it normal for mortgage provider to seek to be noted as an interested party on a home insurance policy? I have received from bank two letters saying that insurance has lapsed (it was actually renewed) asking for details of renewed home insurance and mentioning that the mortgage provider/bank cannot be held liable in the event of any future claim.

    Have the mortgage for last 15 years with no problems.


    The insurer didn't ask who the mortgage was with.


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    dense wrote: »
    Hi there. Is it normal for mortgage provider to seek to be noted as an interested party on a home insurance policy?

    Yes, what they're worried about is that the house burns down, you submit a claim and do a runner with the money. Noting their interest on the property means they get notified if there's a big claim like a fire or catastrophic flood.
    dense wrote: »
    ...mentioning that the mortgage provider/bank cannot be held liable in the event of any future claim.

    Have no idea what that's about.... 'liable' for what?
    dense wrote: »
    The insurer didn't ask who the mortgage was with.

    Not every property has a mortgage. Unless you tell them otherwise, an insurance company will assume that you own the house unencumbered by debt.


  • #3
    dense
    Closed Accounts Posts: 2,175 ✭✭✭dense


    coylemj wrote: »
    Yes, what they're worried about is that the house burns down, you submit a claim and do a runner with the money. Noting their interest on the property means they get notified if there's a big claim like a fire or catastrophic flood.



    Have no idea what that's about.... 'liable' for what?



    Not every property has a mortgage. Unless you tell them otherwise, an insurance company will assume that you own the house unencumbered by debt.

    Mm.

    But does it affect the risk? I can't see that it does, otherwise the insurer would have asked.

    The liable for what part had me puzzled too! They bank was hardly going to be held liable in any event depending on whether they were listed or not.


  • #4
    phormium
    Registered Users, Registered Users 2 Posts: 3,345 ✭✭✭phormium


    In case at some stage in the future if something happened and you were to try blame them for not telling you the insurance had lapsed. They do not intend to be liable as they have now told you a couple of times. If you look it is probably in your mortgage offer as one of the conditions that you have to insure the house and note their interest, it's standard on any loan offer I have ever seen.


  • #5
    myshirt
    Registered Users, Registered Users 2 Posts: 5,245 ✭✭✭myshirt


    Yes, perfectly normal. Surprised you haven't came across it before.


  • #6
    source
    Registered Users, Registered Users 2 Posts: 5,287 ✭✭✭source


    phormium wrote: »
    In case at some stage in the future if something happened and you were to try blame them for not telling you the insurance had lapsed. They do not intend to be liable as they have now told you a couple of times. If you look it is probably in your mortgage offer as one of the conditions that you have to insure the house and note their interest, it's standard on any loan offer I have ever seen.

    Exactly this, to put it bluntly, what the bank is saying, is if your house burns down and it's not insured then you'll have a burned out shell of a house and you'll still be liable for the mortgage. Ie not their problem, keep paying.


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  • #7
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    dense wrote: »
    But does it affect the risk? I can't see that it does, otherwise the insurer would have asked.

    It has no bearing on the risk. It's simply a procedural matter as far as the insurance company is concerned - you tell them that the interests of the Bank of XXX is noted on the policy and they will do so. Then if there is a large claim, they will inform the bank - which is effectively what you have told them to do.

    Your lender has a vested interest in your property being maintained in a saleable condition, that means that they want you to keep it insured so that it will be repaired in the event of a major disaster like a fire or flood and that you will not do a runner with the money. So in the event of a major claim, they will keep a track of the claim and make sure that the money is spent restoring the property and not on a new car.


  • #8
    dense
    Closed Accounts Posts: 2,175 ✭✭✭dense


    Thanks for the replies have it all sorted now


  • #9
    slystallone
    Registered Users Posts: 392 ✭✭slystallone


    Anyone know how to find out how old a house is for house insurance in the case where a house has been renovated and extended from a very old house. Home Insurers are looking for the age of the original property.



  • #10
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,363 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/comment/119109227#Comment_119109227

    Do you at least know how old it is and what documentation they are willing to accept? Old maps showing the structure… land records, the deeds to the property?



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