FAQ - Contingency

What type of properties are covered by the policy?

The policy covers any private dwelling house, flat or maisonette premises in mortgage to the Insured. Semi-commercial properties are also automatically covered (excluding Freedom of Agency). We are also able to consider extending cover to include commercial properties.

Does the Freedom of Agency section of the policy cover Leasehold properties?

Yes, cover includes any premises which a lessor is required to insure in accordance with the provisions of the mortgagors lease, meaning you and the borrower are unable to control the insurance arrangements.

In addition, under the Freedom of Agency section are we covered if the buildings insurance in place is invalidated by any act on the part of the mortgagor?

Yes, the policy covers your financial loss arising as a direct consequence of any act, delay, error or omission to effect or maintain adequate buildings insurance by the borrower.    

In the event that we are unable to obtain vacant possession, how would the policy operate?

Our policy covers you against all such loss damage costs and expenses you may incur. As part of handling any claim, the policy would  operate in a manner which indemnifies against losses incurred as a result of there being a loss in market value of the property because of the inability to sell with vacant possession.  Alternatively, depending on the circumstances of the claim, the policy may operate to allow the Underwriters to try and free the property from the encumbrance to enable the property to be sold with Vacant possession

What are the Physical Damage Perils to which the cover relates?

Physical Damage Perils means all of those perils set out in paragraph 6.13.6 of the CML Lenders Handbook for Solicitors and Licensed Conveyancers England and Wales (1999).

Are the General Conditions in the policy wording flexible?

We will always try to be flexible to accommodate any amendments that are required to reflect your own procedures. Specific requests should be raised at the proposal stage for our consideration.

What are the geographical limits covered under the policy?

UK and Channel Islands.

Do you offer any other products for lenders?

Yes, please click here for our full range of policies.