unassigned insurance

jack77

Hi all, i took out insurance on my mortgage a while back to replace my insurance paid as part of my mortgage repayments, but it was never assigned to my mortgage so i ended up paying both, my question is would i be entitled to a refund on the new mortgage insurance i took out or do i have to suck it up, as i didn't keep my eye on the ball? would it count as being mis-sold insurance as it wasn't assigned by the new provider?

phormium

Suck it up I'm afraid, it was up to you to cancel the existing policy, once you contacted the insurance company to do so they would need permission from the bank to it if it was assigned. The bank would give permission once you showed you had another policy in force, they may not even have required it to be assigned.

Did you ask the new provider to assign it? Even if you did you still would have had to contact the old insurer to cancel the existing policy.

coylemj

You can't claim a refund because mortgage protection is simply a term life policy and you were over insured. If you had died, the two policies would have paid out. Unlike general insurance where over-insuring is prohibited (you can't make a profit if your house burns down because you had it insured twice), there is no limit to the cover you can take out on your own life.

jack77

Ok, didn't realise both policy's would have paid out, I thought only the original policy would have. don't feel as bad so, I was over insured but at least it was extra cover, thanks for the replys,