Lender requires to be joint on the insurance?Make Text Bigger
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?
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