They are saying that the MPC should be the 150K plus 10%.
As mentioned above you need to insure the property for the rebuilding costs (and not the market value or the mortgage amount) which should initially be estimated by the lender in their valuation report and which should be reviewed each year to take account of (construction industry) inflation to ensure that you are not over, or worse still under, insured as far as a possible. The SCS guide to house rebuilding insurance is useful as a rough guide/ready reckoner.We do need to have buildings insurance for 190K which is 40K over the mortgage amount. What is the reasoning there, not that we are worried about it?
Add €40K to what? Are you confusing mortgage protection life assurance cover and home/buildings insurance cover here by any chance? These are two separate issues. The former must cover the mortgage amount while the latter must cover the rebuilding cost of the property. They are not linked in any way!The bank have supplied the figures for the buildings insurance as it was on the letter of offer. The bank are demanding the 190K buildings insurance.
Actually it cost only €2 extra to add the 40k required.
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