Why are SVR holders subsidising cheap trackers?

[Marion]

The insurance value lets say 300,00 (sample figure) is stated in my contract and I am not going to dispute it at the moment.
I take out insurance to cover the house value stated

Marion

 

[Dermot]

The reality is that if you have it over insured and in the event of a claim you will only get the cost of replacement less 250/500 euro or whatever sum you have agreed in your policy. On the other hand if you are under insured you will be cut by the proportion that you are under insured by. The banks rarely if ever check what you are insured for unless you cancel your insurance altogether. I cannot see how they could enforce that clause because there could be a situation in the future where you may have to increase it to protect all interests.

 

[Marion]

They state it as "at least" the sum. So that would cover any rise in the replacement value if that were to occur.


I'm not underinsured. I might be over insured but not by a significant amount. But only a proper valuation would confirm this.

Marion

 

[01NANA]

WHY ARE AIB getting all the slack. What hold do BOI have on the media???

Please tell me ......as the variable mortgage holders received letters from BOI last week to say their variable rate was increased by 0.5% also and no media coverage???? the letter was dated 30/8/2012 but posted to all customers last week.....and not a word in the media....

 

[ryaner]

Pretty much because AIB is 100% state owned. I don't believe boi are as yet.

BOI is 15% state owned, however it we (Ireland Inc.) exercised our preference shares, we'd go to >90%. My betting is that the last set of investors put a clause in to say they couldn't be exercised.

 

[PaddyW]

The reality is that if you have it over insured and in the event of a claim you will only get the cost of replacement less 250/500 euro or whatever sum you have agreed in your policy. On the other hand if you are under insured you will be cut by the proportion that you are under insured by. The banks rarely if ever check what you are insured for unless you cancel your insurance altogether. I cannot see how they could enforce that clause because there could be a situation in the future where you may have to increase it to protect all interests.

Hi Dermot,

Last year I decided to change insurance as I was getting a better deal. I kept the amount the same and the new insurance document was sent to my bank. They came back to say I had to increase the amount as it was linked to some kind of index. Something to do with my T&C's. Strange, I know, but I don't want to challenge them in case it breaches my contract, much like Marion.