Home insurance with your Mortgage provider

[Rebecca611]

Hi,
I have received a good quote for house and contents insurance with the same company that provides our mortgage. It seems an odd relationship to me because, for example, if the house was damaged accidentally and we claimed money back to rebuild it, wouldn't the company have to pay themselves? So as a result, would the company try to find a way to avoid paying out, which will make us paying house and contents insurance pointless via this company?
I may be thinking too much into it, but I just wanted to check with anyone who may have had experience with this just in case there were any cases like this. I prefer not to not only rely on info from the insurers!
Thanks, Rebecca

[EverClean]

It's pretty standard and all OK. If they have quoted a decent premium then go for it. There is no conflict of interest and it is in their interest to keep your property to full repair, as their security is in it.

[dzug]

It used to be difficult to get a mortgage without getting overpriced insurance from your lender but thankfully this is no longer the case. You have the option.

It's rare for them (your lender) to be cheapest but if they are then go for it.