Bank requires extra insurance?

MasterMaggie

Hi I am having nightmare with my Bank they insist on course of construction policy but My builder already has a no risk policy my agent says its unnecessary to take further insurance as both the bank and my self are covered under the builders policy --any suggestions?

phormium

I don't agree with your agent, banks have always insisted you take out your own insurance on the house once you start to draw down the loan.

oldyouth

The terms and conditions of the builders policy may not match the requirements of the policy your bank require. Also, although their interest may be noted on the policy, banks have minimal control over the dealings the builder has with his insurer regarding disclosure and premium payment etc. There are controls the bank can secure by having their interest noted on the builder's policy, but it is preferable that the mortgage holder have his own contract

MasterMaggie

Thanks for your reply we have agreed that my name and address should be included in the builders policy.And we can make this happen. But still the bank will not accept the builders policy. My agent says its actually not possible in this case to take out a course of construction policy as its not a green field site. I have asked my bank to talk directly with the broker so he can explain the situation better but the bank refuse to enter any dialogue with my broker. Any suggestions?

phormium

Can't the broker just ring whatever dept he deals with in the bank, if he organised the loan he must have some point of contact.

How do you mean not a green field site? Did you buy a half finished house or is it more of a self build or what?

peteb2

MasterMaggie wrote: »

Thanks for your reply we have agreed that my name and address should be included in the builders policy.And we can make this happen. But still the bank will not accept the builders policy. My agent says its actually not possible in this case to take out a course of construction policy as its not a green field site. I have asked my bank to talk directly with the broker so he can explain the situation better but the bank refuse to enter any dialogue with my broker. Any suggestions?

Your broker is wrong. You can't take out a self build policy on something that isnt a greenfield site but you can take out a Building in the course of construction on anything or a fire only policy. The companies that do it are limited so either he doesnt know who they are or he isnt fussed on looking.

oldyouth

peteb2 wrote: »

Your broker is wrong. You can't take out a self build policy on something that isnt a greenfield site but you can take out a Building in the course of construction on anything or a fire only policy. The companies that do it are limited so either he doesnt know who they are or he isnt fussed on looking.

Exactly. Brokers who can arrange this cover include the following

Frost Insurance
Campion Insurance
Hooper Dolan
Arachas

MasterMaggie

thanks for that I will investigate further with the brokers