Lender requires to be joint on the insurance?

by Readers Question

9:09 AM, 23rd October 2015
About 3 years ago

Lender requires to be joint on the insurance?

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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’. insurance

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



Comments

Neil Patterson

9:11 AM, 23rd October 2015
About 3 years ago

Hi Penny,

I have just email our insurance man Jason. If anyone will know he will 🙂

Penelope Poore

9:14 AM, 23rd October 2015
About 3 years ago

Thank you Neil. I'll keep my fingers crossed!

Neil Patterson

9:15 AM, 23rd October 2015
About 3 years ago

Jason has told me he is talking to underwriters for you 🙂

Neil Patterson

9:17 AM, 23rd October 2015
About 3 years ago

Apparently this is unusual!

Penelope Poore

9:19 AM, 23rd October 2015
About 3 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.

Jason McClean

9:55 AM, 23rd October 2015
About 3 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 jason@thepropertyinsurer.co.uk directly if you do not want to post here.

Thanks

Jason

Puzzler

9:45 AM, 24th October 2015
About 3 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.


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