Kensington Conveyancing Panel: Buildings Insurance and Changing Lender Requirements

Originally published in January 2015. Updated in October 2026 with historical context and links to subsequent Kensington lender requirements.

Conveyancers acting for Kensington Mortgage Company need to check the lender’s specific instructions on each transaction. Membership of the Kensington conveyancing panel does not mean that requirements remain unchanged from one matter to the next.

This article originally recorded a January 2015 update concerning the maximum allowable excesses under buildings insurance policies. It remains a historical example of why lender-specific insurance conditions need careful attention.

A more recent Kensington instruction concerns a different form of protection: what to do when a lease requires a mortgagee protection clause but does not contain one.

The original update: buildings insurance excesses

The January 2015 post highlighted a change to Kensington’s Part 2 instructions concerning buildings insurance policy excesses.

A policy excess is the amount borne by the insured when a claim is made, subject to the policy terms. A policy can provide buildings cover while still containing an excess that does not satisfy a mortgage lender’s requirements.

The practical point for conveyancers was therefore to check the relevant insurance terms against Kensington’s instructions, rather than assume that the existence of a policy was sufficient.

The original post did not reproduce the excess limits or the complete amended wording. It should not be used to establish either the precise January 2015 requirement or Kensington’s current position.

Why buildings insurance needs a lender-specific check

Buildings insurance protects against insured physical damage. The lender’s instructions may address matters such as the required cover, policy excesses and the arrangements applying to a leasehold building.

On a leasehold transaction, the insurance may be arranged by the landlord or managing agent under a policy covering the whole building. The conveyancer needs to establish the relevant arrangements and consider the documentation against the applicable lender instructions.

If the available information does not establish compliance, the issue should be investigated and any necessary lender instructions obtained. Familiarity with a lender’s previous requirements is not a substitute for checking the requirements applicable to the matter.

Kensington’s newer mortgagee protection clause requirement

Kensington’s new answer to question 5.14.11a addresses a separate lease issue. Where, in the conveyancer’s professional judgement, a mortgagee protection clause is required but is missing, the lender sets out routes for addressing the deficiency.

Those routes are:

• A deed of variation incorporating an appropriate clause into the lease.
• A side agreement where a deed of variation is not possible.
• An indemnity insurance policy submitted to Kensington for approval, with an explanation of why neither a variation nor a side agreement can be obtained.

The wording specifies a minimum notice period of 28 days and addresses the lender’s opportunity to remedy a breach before possession proceedings. It also sets requirements for supplying documents and making enquiries before the certificate of title is submitted.

Read our full explanation of Kensington’s mortgagee protection clause requirement: deed of variation, side agreement or insurance for the details of each route.

Buildings insurance and indemnity insurance serve different purposes

The insurance discussed in the original 2015 article should not be confused with the indemnity insurance considered under the mortgagee protection clause instruction.

Buildings insurance concerns insured physical damage to the property. The indemnity policy contemplated by the newer instruction concerns the lender’s exposure arising from the missing lease protection, subject to the policy’s wording.

Compliance with one insurance requirement does not establish compliance with the other. Nor does obtaining an indemnity quotation establish that Kensington has approved the proposed solution.

A deed of variation changes the lease itself. Insurance does not insert the missing clause into the lease.

What did Kensington require on an older transaction?

When reviewing a historical conveyancing matter, the relevant question is what Kensington instructed at the time. Today’s wording may differ from the wording applicable when the transaction completed.

The Lexsure archive of historical Kensington Mortgage requirements enables enquiries into the recorded Part 2 requirements for a particular historical date, subject to available coverage.

The complete historical record can help investigate earlier instructions, including insurance requirements. The archive also supports enquiries into topics such as defective leases, ground rent escalation, missing easements, flying freeholds and missing building regulations approval.

Historical instructions should be considered alongside the mortgage offer, correspondence, insurance documents and actual conveyancing file. A later change does not, by itself, establish that the earlier transaction was handled incorrectly.

Finding a conveyancer on the Kensington panel

Borrowers looking for a firm can use the Kensington Mortgage Company conveyancing panel directory.

Before instructing, confirm that the particular firm and office can act for Kensington on the proposed transaction. Being able to act for the lender and establishing that the property satisfies the lender’s requirements are separate questions.

If a lease amendment is now holding up your sale

A missing mortgagee protection clause may become apparent when a property is sold or remortgaged. The owner may then need to locate an earlier deed of variation, establish whether an agreement was completed or investigate a new solution.

When I Bought’s guide to a deed of variation holding up a sale or remortgage explains why incomplete or outstanding lease amendments can matter when a property returns to the market.

The immediate task is to establish the present lender’s requirements and the available options. Any investigation into the original purchase requires a separate examination of the documents, advice and instructions applicable at that time.

The continuing lesson for panel firms

The 2015 buildings insurance update and the newer mortgagee protection clause instruction concern different risks. Both demonstrate why Kensington’s Part 2 requirements need to be checked and applied to the particular transaction.

Check the current instructions for live matters and obtain the relevant historical wording when reviewing older files.

This article provides historical context and a general explanation. Conveyancers should consult the live UK Finance Mortgage Lenders’ Handbook, the mortgage offer and any transaction-specific Kensington instructions.