Contractors All-Risk Policy and mortgage lender interest

[SarahG]

Our lender has stated in terms of our mortgage offer the builders policy must state the interest of our lenders and of us as well. Obviously it does not, as it covers all his work.

 

Just wondering if others have come across this and what they have done? I suggested to the builder maybe we need a standalone policy for just our build, he said he would take a look.

[mickeych]

We had the same issue. Assuming your lender has also asked you to provide Site Insurance with them named as having an interest too, (and probably for a sum that they have specified), then you should be able to point out that requiring the builder's CAR covers this same risk is double insuring. If they accept this then they will accept just sight of the contractors CAR (to show that they have one) in addition to the Site Insurance that you are providing.

 

Our broker at Mayflower helped sort this out for us so I am sure that if you are using a broker they can also advise. 

 

Like you we were initially spooked with all the requests for insurance this and warranty that, but you will find a way through it!

[SarahG]

Yes that's exactly it. I wasn't quite sure if we needed our own site insurance, as far as I can tell it's all covered under the builders insurance. He seemed to think we didn't need it anyway.

I'll speak to Protek as I have my warranty through them and have a quote for site insurance. If they can mention saffron on that policy then maybe I will need to do that. Oh well what's another £1000 😩

[PNAmble]

We had the same issue,  is it Harpenden ? we argued with support from Mayflower, and they relented and just accepted the Contractor All Risk insurance.  Our site Insurance and Warranty insurance already had Harp as an interested party.   Obviously the Contractor wasn't going to mention Harpenden in his.   We sent our contract to Harpenden and they decided they were covered as it appropriate insurance clauses in it. 

[SarahG]

3 hours ago, PNAmble said:

We had the same issue,  is it Harpenden ? we argued with support from Mayflower, and they relented and just accepted the Contractor All Risk insurance.  Our site Insurance and Warranty insurance already had Harp as an interested party.   Obviously the Contractor wasn't going to mention Harpenden in his.   We sent our contract to Harpenden and they decided they were covered as it appropriate insurance clauses in it. 

Thanks- I have sent across my site insurance quote from Protek which mentions Saffron. I am hoping that will be enough to satisfy them. So I can just take that policy out and we are good.