FNB recommending Outsource for building cover???

R

Ramcat

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Hi Guys,

So i have just taken out a new home loan with FNB and it seems they seem to be in bed with Outsurance.

The pricing is good but i am concerned about claims.... anyone else had exp with building claims from them?


My current broker/insurer(Aon) is only about R40 per month more and i have had great experiences with them in the past with claims and service....

Another concern is that they seem to add the annual premium to you bond so i would be paying interest on that amount too so maybe not actually cheaper?

Ooba have also quoted and although there service was great in landing the loan, the premium is way out...


Both ooba and Outsurance seem to be pushing the fact that it is very difficult to arrange other insurance as the bank has agreements with them...I think this is a sales pitch though based on this off FNB site...

In terms of our home loan agreement with you, HOC is a requirement. The property remains security of the bank, it is therefore a requirement that you take out adequate cover for the duration of the loan. A suitable HOC insurance is conditional and subject to the bank's approval, irrespective of the underwriting insurer, prior to registration of your bond; and has to be maintained for the duration of the loan agreement. Any insurer may be used as long as the bank's requirements are met within the terms of the policy.

Our requirements include:

The interest of FNB must be noted
Confirmation of mortgagee clause
Confirmation of premium and insured amount
Confirmation of SASRIA cover
Confirmation of Personal Liability Cover
Please note that, should you use an insurer other than the one recommended by the bank, you will be required to provide us with an updated policy following the renewal month of the policy on an annual basis.
 
"Ooba have also quoted and although there service was great in landing the loan, the premium is way out...


Both ooba and Outsurance seem to be pushing the fact that it is very difficult to arrange other insurance as the bank has agreements with them...I think this is a sales pitch though based on this off FNB site..."


Tell FNB and Ooba politely to F&%^ off - you can use any insurer and as you say then provide evidence of this to FNB to add to your customer profile.

FNB and Outsurance are both owned by the same shareholders (Firstrand/RMB) so they push to keep all business in house where possible
 
You do not have to take building insurance with Outsurance if you do not want too. If you are happy with your own broker then you can do building insurance with them as long as you can prove to FNB that you have building insurance. Your broker should be able to confirm this with you. FNB tried the same with me a few years back but I dealt with my one insurance broker.
 
Its not difficult to move... did you try a bond through Investec? They deal with AON, and because of that - no one else could come close to my insurance premiums.
 
xrapidx said:
Its not difficult to move... did you try a bond through Investec? They deal with AON, and because of that - no one else could come close to my insurance premiums.
Click to expand...


Thanks for the replies...no didn't try investec. Went via Ooba and FNB came back at +0.6 for the 100% loan and i was happy to stay with them as i do bank with them...better the devil you know :twisted:

I'll def be staying with my current broker then... i have a large portfolio with them and i've had a few claims which i was really surprised at how easy it was - no questions asked... (Water Leaks, Public liabity when my dog was hit by a car - he was ok -car not, Theft from motor vehicle)
 
Loyalty will get you know where with banks, and 1% on one million is almost R900/pm.
 
1) Never use the banks insurance policy
2) Never use withOutinsurance
3) Use AON as their wording will be better and more comprehensive with little or much less claims hassles.

My opinion.
 
Ramcat said:
Our requirements include:

The interest of FNB must be noted
Confirmation of mortgagee clause
Confirmation of premium and insured amount
Confirmation of SASRIA cover
Confirmation of Personal Liability Cover
Please note that, should you use an insurer other than the one recommended by the bank, you will be required to provide us with an updated policy following the renewal month of the policy on an annual basis.[/I]
Click to expand...

All that info is literally already on your insurance policy document anyway.

For the sake of forwarding the bank 1 email per year, go with your own insurer
 
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