Uninsured Investment property - can lender call in mortage?

MelF

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As per my other post, because of a recent claim and through no fault of my own I am now unable to get home insurance. It is an investment property which is currently rented out, and I am reluctant to advise the lender as I am worried that they may call in the loan.
Is it likely that if the lender discovers that the property is uninsured that they will call it in?
 
well, it's likely that it's a condition of your mortgage that the house is insured, so you really need insurance. It would likely be best to inform your lender.. it's possible that they may be able to secure insurance,.. if not then you may need to write to the insurance federation, or to your local policition for help.

I'd imagine you'd need insurance for fire and other complete losses, lender won't be concerned about contents I'd imagine..
 
If the original policy was assigned to the lender I would assume that the insurance company would contact them to say the policy is lapsed, so it might be a good idea to contact them before they contact you (depending on how efficient they are!). It would be most important to have buildings insurance in place - the loss to you would be substantial
 
Have been trying everything to get house insurance but to no avail as apparently once you've had a claim no underwriter wants to touch you. Have tried the IIF and the ombudsman and a wide selection of brokers but nobody seems to be able to help - in short no insurer will now touch it.

Am all too aware of the risks particularly as it is a rental property and I don't live there, but again if nobody will insure us then will the mortgage be nullifed?
Obviously I am not in a position to pay off the mortgage if it is called in.
 
If you have no insurance then you probably don't have public liability insurance either if anything was to happen to tenants or visitors. In some ways it might be better to contact your lender - they may be able to help as many of them (eg BoI) have an insurance arm themselves.
 
Will your current provider not insure you but at an increased premium?

Nope, current provider is 123.ie and they have recently become tied agents with Travellers Insurance who have refused to cover me. We were with Zurich (who processed the claim) but they won't renew directly and have referred me back to 123.ie which brings me back to square one.

Not sure if my bank have a in-house insurer and tbh am afriad to approach them about this in case they call in the mortgage.
 
This is quite a dodgy position for you to be in and I think you had better be seen to be trying to get it sorted.

I believe it's a standard clause in all mortgages that you absolutely must have insurance that covers the rebuild & refitting costs of the mortgaged property - the mortgage company don't own the furniture or decor, so contents aren't important.

I don't know for sure, but always assume the worst with insurance and liability until you know otherwise. I think the issue of your complete lack of public liability cover is very important - It could be something as simple as a stair carpet coming loose and tripping someone up, but I think you'd be completely liable for that.

Fair enough that you have sought insurance and have so far failed to get it. Make sure that you are keeping a note of all your correspondence so that when you do tell the lender, you can demonstrate your predicament.

I would be very surprised that absolutely no one will cover the house and its certainly not for the simple fact that a claim was made - claims are made on house insurance all the time. The situation must be quite specific and is it the case that the event that was the subject of the claim resulted in a very high payout or is likely to happen again imminently? If the latter is the case, then I think the house may very possibly be both unmortgageable and unrentable.

How would you feel if you found an insurer who was prepared to offer cover but only at a very high rate?
 
What was the size of the insurance claim. It must have been huge claim that no group are willing to take you on? I think you need to approach your lender and ask them for a renewal as you would like to pay it monthly with your mortgage. All lenders usually have an insurnace group? try also quinn and few of the on-line groups. I had claim few years back and moved to quinn last year with no issue and they just wanted to know was claim processed and the value
 
It wasn't a huge claim (just over five figures) nor is it liable to happen again - house is fine now and I've never had a claim in the ten years I've owned it so certainly not a case of being unmortgagable or unrentable. Fully prepared to have to pay a higher rate but problem is I cannot find any insurance company to do it. There is some apparently some issue for other insurers with anything being over 10k yet it was the insurance company's loss adjuster who came up with that figure not me. At the time I expressed concern about future premiums etc esp as damage was caused by adjoining neighbour's property but was basically told not to worry.
 
Look there are enough threads on AAM concerning 123. From your last post it seems something has gone astray. The best and most feasible option is to tell your Mortgage provider who no doubt has a tie up with a decent Insurance Company. Forget 123, they are only brokers who are reliant on commission, not the risk.
 
The problem is that not all banks have their own insurance arm (like say Bank of Ireland has). If the bank only has a "link" with an insurance company, like say Hibernian would that insurance company be obliged to cover the property?
 
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