Mortgage Free

[jw47]

My daughter is now mortgage free but has been told she needs to inform her house insurers that she now owns the property and not the Building Society.  Does anyone know if this is correct or not.

[newmodarmy]

I never did; and as far as I'm concerned, when I took out the insurance policy I owned the house not the lender. I don't remmeber being askedon the proposal.

But  she might as well tell them -there's no harm in doing so.

[jackthehat]

Yes.

Generally the bricks and mortar are insured by the mortgage company.

If she doesn't take out her own Buildings Insurance, she will be liable for any damage that occurs to it and have no-one to claim from.

[barry1010]

I never had building insurance from my mortgage company but it was a condition of the mortgage that the house was insured.

Even if she took the insurance out through her mortgage company her name would be on the policy, not the mortgage company

[barry1010]

Thinking about this again, every year when I renew my insurance I have to tick a box to say the property is owned outright.

Your daughter would have ticked the 'mortgaged' box and now her situation has changed, she should tell them.

I don't trust any insurance company not to find a reason to wriggle out of paying a claim and every insurance has a clause that any and every change in circumstances must be notified 

[granny grump]

Once you are mortgage free the lender has no further interest in the matter. Whilst the mortgae is live you have always been able to insure with any provider you wish as long as the lenders loan is protected. If you could not prove you had insurance the lender was entitled to arrange insurance at you expense to protect their loan. Now that the property is mortgage free she is perfectly entitled to arrange/or not her own insurance. A lovely feeling when you are mortgage free,

[New Judge]

My daughter is now mortgage free but has been told she needs to inform her house insurers...

Who told her that?