PyritePete
Registered User
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I'm slightly confused - do you have 3 policies in total 1) original house; 2) new house original loan; 3) new house new loan?
if it is only the second two you probably have two policies that each cover a portion of your borrowings - this is probably not the most efficient cover, one policy to cover all borrowing would prob be cheaper
Hi,
1. I don't think it's illegal to have more than one policy on a property, it's a policy on your life, not on your house
2. I don't think there's any drawbacks to having two policies, apart from paying extra premiums of course. If you keep all the policies, and then go for another life cover policy down the line for personal cover, then the life company might query why you have so much cover.. If there's a valid claim on your policies, and they are assigned to a mortgage provider, then the benefit will be payable to the mortgage provider to pay off your mortgage. If there's a surplus after this has been paid off, then the balance will be paid to you.
3. You probably won't have any recourse with your mortgage provider, it's up to you to cancel your policy, not them. They should have released the assignment on the older policies when you took out the new one but they would not have the power to cancel your policy.
4. You would need to speak to a financial adviser to see if you should cancel the extra policies, they will tell you exactly how much you should be covered for (mortgage and personal cover) and which policies you should cancel if you do need to cancel one.
5. No, you are not entitled to any reimbursement, if there had been a claim, the policies would have paid out, therefore you have benefitted from the service you paid for.
thanks BetysGirl,
on 3), I just spoke with our mortgage lender and they tell me that the broker should have arranged all this. Can you just clarify for me what you mean here please ?
Thanks
.....................................................................................I think I would be pushing for more, if the box was ticked to replace the existing one then they should have cancelled it and if there was a problem they should have contacted you or the bank to sort. In other words they just ignored the instruction and didn't bother telling anyone they couldn't comply with it.
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