Ecology Mortgages - anyone struggle with special condition on Insurance?

[puntloos]

Ecology included a special condition in our builder mortgage offer that's giving me a lot of headaches (and I seem to be racking up huge sollicitor costs, since apparently our sollicitor has to determine if the insurance is sufficient). It says:

 

 

This baffled a bunch of my team, incl the builder and the QS - effectively they _seem_ to want building insurance on a building that doesn't exist. I understand that ecology want to be able to reclaim their loan somehow if everything on my side fails, but they don't seem to be offering any useful advice on what suffices. 

 

Instead we're trying to get ecology to be on the noted parties list of the builder's all-risk but it's also somewhat unclear if that will suffice. What have others here done? Did your mortgage include this condition?

 

 

Edited December 23, 2022 by puntloos

[PeterW]

No but a standard construction all risk policy would suffice. Will cost you about £300 I would expect for the build period 

[puntloos]

15 minutes ago, PeterW said:

No but a standard construction all risk policy would suffice. Will cost you about £300 I would expect for the build period 

 

That's what I thought, and the contractor has an all risk but my sollicitor has the impression that I need to have that insurance (or at least that the mortgage company is added to the all risk as a noted party of interest).

 

A few of the first hits on google on "construction all risk policy" demand that I'm a company to take this policy out, and I can't apply as an individual. Am I missing something? 

[PeterW]

Here you go

https://www.selfbuild.uk.com/forms/products/SelfBuild/SB_1_QuickQuote.aspx

 

Standard Zurich policy

 

 

[puntloos]

1 hour ago, PeterW said:

Here you go

https://www.selfbuild.uk.com/forms/products/SelfBuild/SB_1_QuickQuote.aspx

 

Standard Zurich policy

 

 

Good lead, thanks. Sadly my contracted cost is slightly above that, so will need to call them but will give that a go!

Happy for other insurers to chime in too

[Seren161]

“It is a condition of this mortgage that buildings insurance cover is in place, that it is sufficient for your property and remains in place for the duration of this loan. We can provide you with a quotation on request.”

 

Similar..we had the buildcare site insurance which included the required reinstatement value of the anticipated full build cost as opposed to mortgage borrowing . Rebadged and probably significantly overpriced .. I think it was underwritten by Catlin insurance