Impact of no flood insurance on mortgage?

[beddington]

My home is in an area that insurers deem to be at risk of flooding (long since completed flood protection works not withstanding).

I have been paying a premium (2x plus massive excess) for insurance that includes flood cover, but the insurer is now completely withdrawing flood cover.

My question is whether or not I need to fear my mortgage provider's reaction to the withdrawal of flood cover?

Could it impact my mortgage in any way? I see no specific reference to it on their website nor in any of the documents I have. It is simply stated that I must ensure "adequate buildings insurance". That "adequate" there seems rather a loose term for such an important legal obligation.

If I say nothing and just continue with the same insurer, no one is going to notice anything. If I switch to a cheaper insurer (who also won't cover flooding), I'll need to provide the lender with a new letter of indemnity, and perhaps then they note the lack of flood cover, and perhaps then they decide to punish me...

Any thoughts? Thanks

 

[RedOnion]

In practice, there's nothing your current mortgage provider can do. It does however impact on your ability to switch mortgage provider in future.

If you switch insurer, there'll be a message sent to the bank noting you've said they are mortgage provider. You don't need to send any letters or anything, it's not the same as drawing down a new mortgage.