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Response to Indemnity Insurance?

from Sue Edwards (london.specialists@nacab.org.uk)
The situation with indemnity insurance is like this:

The insurance policy is purchased by the lender to protect them against selling the property at a loss if it is repossessed. They took out the insurance because they were lending you 75% or more of the original value of your house. The contract is between the lender and the insurance company - the lender just passed the cost onto you. This is the reasoning behind the case you mentionned (Woolwich Building Society v Brown).

I have not known of any successful challenges to this reasoning.

Sue Edwards

(posted 9137 days ago)

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