Home Insurance for Mortgage?

Weyhey

A few questions re home insurance prior to getting a mortgage/ closing house sale -

One quote received and broker says they want full years payment in front as they don't do direct debit? Is this normal? What happens if for some reason house sale falls through?

Insurance must be in place before mortgage is drawn down so could be paying insurance months before getting keys - is this normal?

Broker can't apply contents insurance as renovations will need to be carried out prior to moving in? Is this normal?

Also anyone recommend somewhere that will offer insurance for a house that needs renovations before moving in?

Any help gratefully appreciated.

Eldarion

There's a whole legality area about insuring something you don't have a vested interest so I think you must at least have a down payment made prior to insuring it. Insurance before keys is normal.

Everything else is broker's problem. You can set you contents insurance to whatever you please, the actual market value of the stuff is going to come into question if you try to claim. Just like you can insure your 20 year old car for 15k, you're not going to get 15k if you crash it, you'll get the current market value and it'd be more fool you to be inflating your quote like that.

I've just looked up house insurance from 4 different crowds now and none even have an area where you'd specify anything about renovations...

Typically it's as simple as:

Building Value €XXX,XXX
Contents Value €XX,XXX

And then it's House Type, Age, Ownership, Alarms, and years no claims.

simpson80

hi there. I had to organise this a few weeks ago too. I paid it all down but I asked the broker what would happen if the house sale fell through and he assured me he would sort it if that happened, wouldn't put it in writing tho!

MarkAnthony

Eh - this seems bloody odd.

My insurance just goes active when I ring them a couple of days before closing. It's through KBC, I think Allianz underwrite.

Weyhey

Eldarion wrote: »

There's a whole legality area about insuring something you don't have a vested interest so I think you must at least have a down payment made prior to insuring it. Insurance before keys is normal.

Everything else is broker's problem. You can set you contents insurance to whatever you please, the actual market value of the stuff is going to come into question if you try to claim. Just like you can insure your 20 year old car for 15k, you're not going to get 15k if you crash it, you'll get the current market value and it'd be more fool you to be inflating your quote like that.

I've just looked up house insurance from 4 different crowds now and none even have an area where you'd specify anything about renovations...

Typically it's as simple as:

Building Value €XXX,XXX
Contents Value €XX,XXX

And then it's House Type, Age, Ownership, Alarms, and years no claims.

I think in the small print it mentions having to give them notice of renovations. Also the big issue is that the house will be unoccupied while renovations are done or until they are finished and it is not clear how long they will take and insurers don't like unoccupied properties.

Mrs OBumble

Weyhey wrote: »

I think in the small print it mentions having to give them notice of renovations. Also the big issue is that the house will be unoccupied while renovations are done or until they are finished and it is not clear how long they will take and insurers don't like unoccupied properties.

Correct.

No matter what it says on-line, you MUST notify them of anything that may change your risk profile, that includes renovations, the house being unoccupied or reoccupied, a person living there having a criminal conviction, etc. These things won't necessarily change your premium, but have to be declared up front.