Lender requires to be joint on the insurance?
I am trying to raise a small loan to finish the conversion of a house into three flats. The lender is insisting that it is jointly named on the insurance policy, and also that the policy contains a ‘mortgagee’s non-invalidation clause’.
This effectively provides that the insurer will pay out to the lender even if the insurance is invalidated by an act etc. of the mortgagor. Tony Atkins has pointed me to articles which make it clear that this is a new policy by lenders since 2012 in response to a change by the insurers.
My brokers can’t find any insurer who will cover this. Has anyone else come across it and does anyone know of a company who will do it?
Many thanks
Penny
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Member Since February 2011 - Comments: 3453 - Articles: 286
9:11 AM, 23rd October 2015, About 10 years ago
Hi Penny,
I have just email our insurance man Jason. If anyone will know he will 🙂
Member Since April 2014 - Comments: 17
9:14 AM, 23rd October 2015, About 10 years ago
Thank you Neil. I’ll keep my fingers crossed!
Member Since February 2011 - Comments: 3453 - Articles: 286
9:15 AM, 23rd October 2015, About 10 years ago
Jason has told me he is talking to underwriters for you 🙂
Member Since February 2011 - Comments: 3453 - Articles: 286
9:17 AM, 23rd October 2015, About 10 years ago
Apparently this is unusual!
Member Since April 2014 - Comments: 17
9:19 AM, 23rd October 2015, About 10 years ago
Yes, that is what my brokers said. But, from the article Tony directed me to, it looks as though it’s becoming increasingly common.
Member Since June 2014 - Comments: 175 - Articles: 99
9:55 AM, 23rd October 2015, About 10 years ago
Hi Penelope
The good news is we should be able to deal with this, but we need to talk to you, this will take a telephone conversation. Can you advise on best number – feel free to email me at [email protected] directly if you do not want to post here.
Thanks
Jason
Member Since July 2013 - Comments: 1264 - Articles: 1
9:45 AM, 24th October 2015, About 10 years ago
I have one property where the lender regularly requests a copy of the insurance, I also used to have a commercial mortgage whose lender also required a copy. That said, they are not named on it.