Change of home insurance provider

[HouseBuyer10]

Hi everyone

We have never changed our home insurance provider since 2015 when we got a mortgage. I’ve asked for a couple of quotes from other insurers and was shocked at the difference (approx.€120) between the renewal quote we received from our current home insurance provider and the other quotes.

We would like to change to another home insurance provider.

If you have done this recently, what happens after we pay the new insurer? Do we need to inform the bank or will the new insurer do that?

Is there anything else we need to do to make sure the mortgage is not affected negatively?

Thank you.

 

[ClubMan]

If you have done this recently, what happens after we pay the new insurer? Do we need to inform the bank or will the new insurer do that?

The insurer/broker will ask if there's a lender with an interest in the property when you're taking out cover and will inform them as far as I know.

Is there anything else we need to do to make sure the mortgage is not affected negatively

Don't think so as long as the property is adequately insured for the rebuilding cost and the lender is satisfied. There's no real question of negatively impacting the mortgage. The insurer just requires that the property is adequately insured. They're not that interested in the details otherwise.

You can estimate the rebuilding cost using the SCS ready reckoner as a rough guide.

SCSI House Rebuild Calculator

A Guide to Calculating House Rebuilding Costs for Insurance Purposes (2023/24) Are you renewing your home insurance and unsure what rebuilding cost you

scsi.ie

Make sure that the policy cover/terms and conditions meet your specific needs and don't shop around on price alone.

 

[Freelance]

There is nothing unusual in what you are proposing and it happens every day. As Clubman said ensuring that the property is adequately insured, covering debris removal, FBCs(Fire Brigade Charges) and full rebuilding cost is paramount. There are two things required of you:

1. The bank/mortgage provider's interest MUST be noted on the insurance policy
2. You must inform your insurer of the change.

See BOI's requirements here. Other mortgage providers will have very similar requirements. You could give them a call to check

What do I need to do with regard to my mortgage if I change my insurer? - Bank of Ireland

You can switch your life or home insurance provider at any time. Simply notify us at the address enclosed.

www.bankofireland.com

 

[ClubMan]

2. You must inform your insurer of the change.

Did you mean lender?
I thought that the insurer informed the lender.
But no harm in making sure I suppose.

 

[HouseBuyer10]

Thank you, ClubMan and Freelance.
I rang one of the insurers and they said they would send a letter to the bank / lender, but it would be good for me to check with the bank as well. I’ve tried to ring the bank today with no success, so I’ve emailed them and hopefully they’ll respond soon.
I wonder if our bank should receive the new quote we’d like to go for and approve it as a suitable switch.
Thanks.

 

[ClubMan]

I wonder if our bank should receive the new quote we’d like to go for and approve it as a suitable switch.

You don't need to go to that bother.
Just make sure that the buildings cover is adequate and for the estimated rebuilding cost (see my earlier post).
Your lender may have an email address for you to send them the updated insurance cover details like the BOI link posted above.
Don't overthink this.
Switching insurance cover on a mortgaged house is no big deal.

 

[HouseBuyer10]

Thanks so much, ClubMan. Building cover is adequate, all calculated, contents cover included, FBCs, etc. I was just stressing because it’s the first time when we’re switching this type of insurance.
Many thanks for the clear info and advice.

Are you familiar with home insurance policies for 2 and 3 years. Is it worth going for that instead of the usual annual policy?

 

[ClubMan]

Are you familiar with home insurance policies for 2 and 3 years. Is it worth going for that instead of the usual annual policy?

I've no experience with them.
I shop around each year for the best deal for the cover that I need.
I suspect that locking into a 2-3 year deal may not be as cost effective and is definitely less flexible.

 

[roker]

Hi everyone

We have never changed our home insurance provider since 2015 when we got a mortgage. I’ve asked for a couple of quotes from other insurers and was shocked at the difference (approx.€120) between the renewal quote we received from our current home insurance provider and the other quotes.

We would like to change to another home insurance provider.

If you have done this recently, what happens after we pay the new insurer? Do we need to inform the bank or will the new insurer do that?

Is there anything else we need to do to make sure the mortgage is not affected negatively?

Thank you.

Don't just look at the price, look at the exclusion clauses what they won't pay out for. Or what you might call get out clauses ie. Water leaks etc

 

[Black Sheep]

And see if you can get a protected no claim bonus. I got one on mine yesterday

 

[HouseBuyer10]

Thanks, everyone, I appreciate your advice. I’ve got a few quotes from Zurich, Aviva, Axxa, Allianz. Would you recommend any of these for their customer service?

 

[roker]

Thanks, everyone, I appreciate your advice. I’ve got a few quotes from Zurich, Aviva, Axxa, Allianz. Would you recommend any of these for their customer service?

I have Aviva for 5 yrs which has a no claims bonus taken from a ridiculous high basic quote which brings it back to a normal price

 

[Freelance]

Did you mean lender?
I thought that the insurer informed the lender.
But no harm in making sure I suppose.

You are correct - I should have typed "You must inform your lender of the change"

The insurers "may" inform the lender the change (inception of the new policy and cancellation of the old one) but the onus is on you to notify them. I wouldn't leave it to chance.

 

[Leo]

Long time ago now but Ulster Bank told me I didn't need to inform them. I'm with KBC now and their notes doesn't say I must tell them, it says the insurer will send them the required Letter of Indemnity.