Home Bank wants me to increase buildings cover

T

timmatrix

Guest
I changed my house insurance company recently, and after checking the rebuilding costs with the Society of Chartered Surveyors I lowered my buildings Insurance cover by 20k to 180k.
Bank of Ireland Mortgages now wants me to increase cover back to 200k (because this was the rebuilding cost a few years back when I re-mortgaged with them) even though they are only owned 70k. I am not or have never been in arrears with my mortgage.

I was going to write to BOI stating:
1: The rebuilding costs with the Society of Chartered Surveyors is now 180k because of lower building costs.
2: The reason I'm shopping around is because of the extra tax and levies I'm paying because of the bank bail-out.
3: And if the Bank wants me to increase my buildings insurance please send me the 50 euro extra it's going to cost.

What do you reckon?
 
Hi- This happened to me in Sept- I sent them a letter with a copy of the 2010 Society of Chartered Surveyors guidelines noting these were used in calculating rebuild costs. I invited them to ring me to discuss the matter further.
A week later I got a letter stating they had updated their records accordingly & I've heard nothing since.
 
This also happened to us. We insured our house according to what it had cost to build as we had just done so and had all receipts, costs etc. Lender made us increase it according to Surveyors of Ireland guide, which we did. Then the lender did a valuation for final drawdown on build and as that valuation was higher they asked us to increase cover again. WE rang them and argued that the value was one thing but the cost was another and we weren't willling to increase cover a second time. They agreed!!!
 
House valuations have nothing to do with rebuild costs. Very surprised the bank mortgage department didn't know this.
 
Go with 1 & 2.
 
You must log in or register to reply here.
Menu
Log in
Register