Life insrance and House Insurance from mortgage provider

[deeobrien]

Hi,

I have approval in principal from PTSB for a mortgage. I've just gone sale agreed on a property so I'm on with the bank about the necessary valuation and other steps required for the letter of approval to be issued. Once the valuation is back they will arrange an appointment to talk about life insurance, house insurance (opening an explore current account required for monthly 2% cashback offer).

I had been going to arrange my own life/house insurance cover as I have got quotes a bit cheaper myself. The life insurance premium is the same but if I go with a different broker I get 47% of the year 1 premium back as a cash rebate. House insurance is about €120 more via PSTB (despite 12 months for 8 offer). However I'm wondering might it be more efficient/less painful to just go with the bank for the insurance policies? That said I assume if I just give them policy documents and have them listed on the house insurance policy that should cover it?

I'm still struggling with the timeline for when to arrange cover. Solicitor haven't received contracts yet (only just went sale agreed) so I don't know when the sale will close. At the same time I want everything lined up so there is no delay in the bank sending out the formal loan approval. I'm still wondering how to arrange house insurance in advance for a house you don't own

Deirdre

 

[Steven Barrett]

Get the underwriting done for your life cover so everything is ready to go. All you need to give the insurance company is the start date then. The start date doesn't have to be to the day they give you the money.

House insurance doesn't take long to put in place.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[LDFerguson]

However I'm wondering might it be more efficient/less painful to just go with the bank for the insurance policies? That said I assume if I just give them policy documents and have them listed on the house insurance policy that should cover it?

It wouldn't be more efficient or less painful. Just needlessly more expensive. If you've got a better deal for the same cover, go with it. On the life insurance, just make sure that the amount of cover and the term match up with your mortgage precisely. As Steven says, apply for this now and get an Acceptance Letter. Put the cover in place when you are within a week or two of closing and send the policy to the bank.

On the house insurance, make sure that the amount of rebuilding cover is at least what the valuer said on the mortgage valuation report. Make sure the address on the policy matches the address on the loan offer precisely. If it's a joint mortgage, make sure both names are on it. And finally make sure that the interest of the lender is noted on the house insurance policy. This is not required (or possible) on the life insurance policy as that's dealt with by a Deed of Assignment which your solicitor will help you with.

Many house insurance brokers can print off documentation for you in their own offices so it can be done almost while you wait.