I have just sold my property. The buyer obtained a mortgage and with it the mandatory Property Insurance. I went to the bank to cancel the property insurance I had on the property after paying off my Mortgage, and they said that It could not be cancelled and that I had to continue paying the monthly premiums until the end in April 2017. Firstly why should I pay property insurance for somebody else? and secondly isn’t it illegal to have property insurance from 2 companies on one house at the same time? Any guidance would be appreciated.
It may be annoying, but I don’t think it’s illegal to have duplicate insurance. If the small print says you can’t cancel your insurance before that data it might not be a legal clause (I have no idea but there have been lots of illegal clauses in mortgage contracts in recent years) but the cost of contesting it in court might outweigh the cost of paying the insurance for six more months.
I am not an expert on insurance matters, but I suspect you will find that property insurance policies are always taken out and renewed on an annual basis, and that the premium is always due for the full year..
Your insurance company will probably argue that monthly payments were just a facility offered, to spread the cost over the year.
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