Home Is there a minimum limit on contents insurance?

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Kerrigan

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My home insurance policy is assigned to my mortgage provider. I contacted the insurance provider today to discuss lowering the premium.

Besides being prevented from discussing the policy indept, I was informed that I could not lower the premium on my homes contents as the bank had set a minimum requirment.

My questions are, firstly is this legal and secondly is there a minimum limit on contents insurance within a home insurance policy?

I did contact my bank and they said that this was their requirment.
 
Thanks for the heads up Time.

Interesting, I don't have anything of great value in the house, but many moons ago I did remortgage to build an extension, purchase a new kitchen and put in new flooring. Could it be possible they are insinuating these as the valuables???

Otherwise, I have nothing of value, but they have requested my contents be 24k more than what I would consider them to be valued at.
 
Your mortgage provider should have no input on the level of contents cover taken out by you. This is up to yourself to decide.
 
Thanks for the feedback 44Brendan.

Yes, I was very surprised to hear that this was a 'suppossed' requirement of the banks. I will get onto them again and ask them to put this in writing. Insurance for 24k worth of contents is off the wall especially if the contents of the property are virtually worthless.
 
Kerrigan said:
Thanks for the feedback 44Brendan.

Yes, I was very surprised to hear that this was a 'suppossed' requirement of the banks. I will get onto them again and ask them to put this in writing. Insurance for 24k worth of contents is off the wall especially if the contents of the property are virtually worthless.
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€24000 is a very low figure for contents generally and you need to look at how much it would cost to replace the contents new.
I have dealt with a number of fire claims where the contents sums insured were substantially under insured.
 
Try getting 24K out of an insurance company if you don't have receipts etc. If the contents are not worth much all you will get is a pittance regardless of the amount insured.
 
Kerrigan said:
Interesting, I don't have anything of great value in the house, but many moons ago I did remortgage to build an extension, purchase a new kitchen and put in new flooring. Could it be possible they are insinuating these as the valuables???
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Usually, fixed items such as a kitchen or flooring are considered to be buildings rather than contents. As a very rough rule of thumb, anything that you'd take with you if you moved would be "contents" and anything that would be left behind if you moved would be "buildings".

I'd second all previous posts that your lender should have no interest in the amount of contents cover (if any) you hold. Ask them to put in writing why they claim to have an interest in the contents insurance.
 
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