The Intermediary – November 2025 - Flipbook - Page 94
P RO T E C T I O N
Opinion
What every mortgage
broker should know
A
t Safe & Secure Home
Insurance Ltd, we
work closely with
5,500 mortgage
brokers across the
UK, ensuring that
home insurance and mortgage lending
are intrinsically linked.
When handled early and correctly,
home insurance can protect your
client’s investment, safeguard the
lender’s security, and ensure a smooth
completion. When overlooked, it can
cause delays or even put deals at risk.
Here’s why every mortgage broker
should understand and talk to their
clients about the vital link between
mortgages and home insurance.
Why require insurance?
When a lender issues a mortgage,
they’re securing the loan against
the property itself. If that property
were damaged or destroyed, both the
homeowner and the lender would
suffer financial loss. That’s why
buildings insurance is a mandatory
condition for almost every mortgage.
It ensures that if the home is damaged
by fire, flood, or another major event,
the funds are there to rebuild.
Lenders also require that they’re
listed as an ‘interested party’ or
‘mortgagee’ on the insurance policy.
This ensures they’re informed of
any lapse or cancellation, a crucial
safeguard for their investment.
Broker tip: Encourage clients to
arrange insurance once their mortgage
offer is issued, not at the last minute.
Missing insurance documentation
can be one of the reasons for
delayed completions.
Lender expectations
Not all policies are created equal. As
an insurance specialist, we frequently
help clients adjust or replace cover
when needed.
Here’s what most lenders expect:
Buildings insurance that covers the
full rebuild cost of the property;
88
The Intermediary | November 2025
Continuous cover for the duration of
the mortgage;
Mortgagee clause listing the lender
by name.
STEPHANIE DUNKLEY
is development director
at Safe&Secure
While contents insurance and
accidental damage cover aren’t usually
required for mortgage approval,
they’re invaluable for homeowners’
peace of mind. The majority of
homeowners have a combined
buildings and contents insurance
policy from exchange date.
Exchange, not completion
Many homebuyers assume their
home insurance should begin on the
day they complete and move in, but
cover should start from the date of
exchange of contracts. That’s because
at exchange the buyer becomes legally
responsible for the property, even if
they haven’t yet received the keys.
If the home were damaged by
fire, flood, or vandalism between
exchange and completion, the buyer
may potentially still be obliged to
go ahead with the purchase and
without insurance, they could face a
significant financial loss.
By having a valid policy in place
from the moment of exchange,
both the client and their lender are
protected during this critical period
when ownership risk has transferred
but the home is not yet occupied.
It’s a small step that prevents major
problems and something every
mortgage broker should remind their
clients to arrange early.
Benefitting everyone
When mortgage and insurance
professionals work together, the client
experience improves dramatically.
At Safe and Secure Home
Insurance Ltd, we:
Liaise with mortgage lenders to
confirm coverage requirements;
Issue compliant policy
documentation promptly to avoid
completion delays;
Provide renewal reminders to
ensure continuous protection;
See our partnerships with mortgage
brokers as a key part of providing
clients with a seamless, stress-free
journey from offer to move-in.
For mortgage brokers, insurance
conversations are more than just
a compliance step, they’re an
opportunity to add real value.
By raising the topic early and
referring clients to a trusted insurance
specialist, you:
Demonstrate care beyond the
transaction;
Reduce the risk of completion
delays;
Reinforce your reputation for
thorough, professional service.
In today’s competitive market,
offering a complete and confident
home-buying experience can set
you apart.
At Safe & Secure Home Insurance
Ltd, we specialise in supporting
mortgage brokers and their clients
with clear, compliant, and competitive
home insurance solutions.
Our team works hand-in-hand
with brokers to ensure every policy
meets lender requirements and
provides genuine peace of mind for
homeowners.
Together, we can make sure every
client’s home and every mortgage you
arrange stays truly safe and secure. ●
