Home About Us Quotes Contact Us Privacy Terms and conditions UK customers click here

Ask an Expert | Recent Questions

QUESTION: I am being required to purchase flood insurance by my new mortgage holder. I am paying 3 times more for flood than I am for my normal homeowners. I find this ridiculous. Is there any relief? Is there a lower cost option? I have been in this house 23 years and my insurance agent has stated flood waters need to rise to the 1st level above ground to even be collectable. The possibility of this occuring in my split entry home is extremely remote. Any recommendations? I don't want this insurance and am looking for the cheapest way out.

ANSWER: We are sorry to hear of your problems. We cannot give you a direct reply without seeing the exact terms on which the mortgage holder relies. Contractual terms vary so much. Some are enforceable, others are not.

The question is intriguing. Why do you have a new mortgage holder? It is possible this is a change in the ownership of the debt. If so, you will have to look at the terms of the mortgage to see on what basis the debt can be assigned and what power a new mortgage holder has to vary the terms of the original agreement unilaterally. Then you need to look at exactly what flood insurance you have been instructed to buy. Exactly what is being covered? Does the mortgage entitle you to buy a substitute that offers comparable coverage? Have you got quotes for alternative coverage? Does your home stand on a flood plain? Is federal cover available - this is usually the cheapest option if your home is at risk of flooding?

When you have the answers to these questions, take the quotes and your copies of your original documents to an attorney and get advice. This will cost you dollars but it is the only way to get precise advice based on your actual circumstances.


Do you have your own question?

Please wait while an email with your question is being sent ...
Home Insurance Basics
Weekly Theme
Tip of the Day
Client Testimonials
Around The House
Ask an Expert
Home Insurance Articles
Can Help You
Today’s quiz