RNRB and Mortgage insurance cover

I am wondering how HMRC would treat the application of the RNRB when the deceased had taken out insurance on the main residence which covers the entire outstanding mortgage on death. Would the full value of the deceased’s residence be taken into account when applying the RNRB relief given that the mortgage debt is repaid on death or would the net value of the property only still be considered even though the insurance lump sum is paid into the estate?

Many thanks,

Justine Church
Ellen Fay Solicitors

The net value only qualifies

Simon Northcott