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Mortgage providers
Although Home Insurance is not compulsory, unlike car insurance, you are obliged by your mortgage lender to have your Buildings insured at a satisfactory level.
They would prefer you to Insure with their own policy or a policy that they sell for a commission.
They will receive high commissions for selling these policies and you need to be aware that less expensive and better policies are often available elsewhere.
Because you are happy that you have been granted a mortgage it is easy to make a quick decision over your Home Insurance and pay over the odds.
Also beware of being tied in with automatic renewals paid with your Mortgage payments, like any Insurance bill, this needs to be checked annually.
Although building societies often put their name to a policy, it is often underwritten by an insurance company. Why take risks with claims when they can earn enormous commissions just selling policies.
Examples:
• Halifax (Bank of Scotland)
Associate insurer – Halifax BOS
• Woolwich (owned by Barclays Bank)
Associate insurer – Barclays
• Abbey National
Intermediary acting for several companies
• Alliance & Leicester
Associate insurer – Zurich
• Bradford & Bingley
Intermediary acting for several Insurers
• Nationwide
Associate insurer – Churchill/Direct Line |
