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The bank made me take house insurance when I got my loan, is this right?

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In short yes because when you have a mortgage against a property the lender (Bank in this case) requires that property to be insured to protect the value of the property and their interest in that property. You would have also been asked to ensure that the lender was noted on the insurance policy as having an interest. This seems all OK to me as long as they did not insist or demand you take it with that particular bank as you should have been given the opportunity to shop around for the best policy that suited your circumstances and budget.

I always recommend taking out a policy as soon as you hold an unconditional contract over a property as you hold an interest in that property even though it has not settled yet. 


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