Thread: How much can we claim for Mis-sold Mortgage Protection Insurance

I obtained a mortgage, life cover & mortgage protection insurance 2 years ago from a broker. I was told by the broker that "it would look good for my Mortgage application if I took out the cover and the Mortgage proptection insurance", so I followed his suggestion. At the time I had filled out and signed what they called a needs assessment form which laid out what my exact requirements were for the mortgage, life cover and insurance. In it I specifically asked for Unemployment protection insurance.

2 years later I have just been made redundant and when I looked at my insurance policy it only covers me for disability and critical illness. I still have my copy of the 'Needs assessment' I signed which says I wanted unemployment insurance. I also found a letter, dated 2 months after I moved in to my property, from the broker saying that I HAD to now keep this insurance / life cover for 4 years, as that is how they received their commission, despite the fact my fixed rate mortgage was only a 2 year deal.

So I've contacted the brokerage company to say that I was cancelling this insurance and that I believed I'd been mis-sold. They have admitted that they haven't provided the insurance package I reqested. They are currently investigating with Legal & General, the insurers as to whether it was their mistake or whether the broker never asked for it in the first place.

So I need to know, if as I suspect it is the brokers fault, in addition to getting all my premiums back for this insurance, can I claim against them for the loss of the Unemployment insurance premiums I would otherwise be getting from Legal & General, had the insurance been set-up correctly.

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How much unemployment cover did you think you had?

I was told the insurance I was going to get would cover my monthly mortgage payments (about £600 per month) 4 weeks after redundancy unemployment. And I believe I was told an additional amount for income would be paid on top.

I am no expert but I believe you might have some recourse on the unemployment cover, although they could argue that you should have looked at the insurance documents at the outset!

Someone, will be along soon hopefully with expert guidance!

BobbyH

Nearly five years ago we moved house and because we were having quite a hike in our mortgage deioded to opt for mortgage Protection and our building society arranged for a financial adviser to come and see us.

We informed him that we wanted to be insured for every eventuality, redundancy, Sickness and Death he quoted us and we duly took out the policy.

Today I need to make a claim against the policy for redundancy and have just learned that I am not insured for this. WARNING - please check your policy and confirm that you are insured for what you think you are. Both my husband and myself are adamant that we specified this as a pre-requisite to us purchasing the policy and we have paid £158 per month for almost 5 years - cheap at half the price I think not!!!!!!!!!!!!!!