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  • FIRST POST
    Sonical
    Halifax overcharging home insurance
    • #1
    • 2nd Sep 13, 1:53 PM
    Halifax overcharging home insurance 2nd Sep 13 at 1:53 PM
    I have recently been sent my new house insurance cover amount
    from Halifax which is £614. As it had previously been rolled up with my mortgage (now paid off) I had let it roll for 10 years.
    I am now surprised to find that I can get the exact same cover for £107 from another insurer which I have taken.
    Is there any presidence for any compensation claim from the previous years which have obviously been overcharged?
Page 1
    • dunstonh
    • By dunstonh 2nd Sep 13, 2:23 PM
    • 84,066 Posts
    • 49,075 Thanks
    dunstonh
    • #2
    • 2nd Sep 13, 2:23 PM
    • #2
    • 2nd Sep 13, 2:23 PM
    Is there any presidence for any compensation claim from the previous years which have obviously been overcharged?
    You havent been overcharged. They told you the price each year and you accepted it. No overcharging.

    Almost certainly you are paying over the odds but that is quite normal with bank products. They are nearly always up there with the most expensive on the market.

    Despite the fact they will be more expensive, it is almost certain that you are not comparing like for like. Yes, the bank will be more expensive but that difference suggest a difference in policy coverage as well. Perhaps accidental and Personal possessions cover on the old one and nto the new one. Plus, if you are using a comparison site, the cheapest ones usually lop off coverage that exists on older more comprehensive plans.

    Bottom line is that no, you cannot reclaim money on something you agreed to pay.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • _Andy_
    • #3
    • 2nd Sep 13, 7:31 PM
    • #3
    • 2nd Sep 13, 7:31 PM
    I have recently been sent my new house insurance cover amount
    from Halifax which is £614. As it had previously been rolled up with my mortgage (now paid off) I had let it roll for 10 years.
    I am now surprised to find that I can get the exact same cover for £107 from another insurer which I have taken.
    Is there any presidence for any compensation claim from the previous years which have obviously been overcharged?
    Originally posted by Sonical
    So in your view, every insurance product should cost the same with every provider?
    • roonaldo
    • By roonaldo 2nd Sep 13, 7:42 PM
    • 3,363 Posts
    • 1,597 Thanks
    roonaldo
    • #4
    • 2nd Sep 13, 7:42 PM
    • #4
    • 2nd Sep 13, 7:42 PM
    is it the same level of cover for £107? I doubt it. this may be like comparing waitrose to tesco value. personally I find waitrose expensive so I dont shop there.
    • Goldiegirl
    • By Goldiegirl 2nd Sep 13, 7:59 PM
    • 8,288 Posts
    • 47,134 Thanks
    Goldiegirl
    • #5
    • 2nd Sep 13, 7:59 PM
    • #5
    • 2nd Sep 13, 7:59 PM
    That sort of home insurance where the premiums were debited to the mortgage was horrendously expensive.

    But they did tell you up front what they were going to be charging you, so it was your choice that you accepted the premium each year.

    Although expensive it was a very comprehensive cover. You could have phoned them to see if the premium could have been reduced, as they did do discounts for things like locks on windows and having burglar alarms.

    Or you could have done what you have done now - shopped around and got a cheaper policy.

    Be very careful though, that £107 almost certainly doesn't offer such a high level of cover as the Halifax policy - check things like is accidental damage covered, what is the sum assured, and is the policy excess a really high figure.

    But there are no grounds whatsoever for compensation.
  • Sonical
    • #6
    • 3rd Sep 13, 9:59 AM
    • #6
    • 3rd Sep 13, 9:59 AM
    Thanks for the replies. I realise that i could have been more attentive before. However, i have ill health and do feel i have been taken advantage of.
    I have scrupulously examined the Halifax and my new insurers policies and there is no advantage in the former.
    • themull1
    • By themull1 3rd Sep 13, 10:02 AM
    • 4,195 Posts
    • 4,104 Thanks
    themull1
    • #7
    • 3rd Sep 13, 10:02 AM
    !
    • #7
    • 3rd Sep 13, 10:02 AM
    Theres nothing you can do, you accepted the policy every year without shopping around, at least you've got a bargain now!
  • _Andy_
    • #8
    • 3rd Sep 13, 10:02 AM
    • #8
    • 3rd Sep 13, 10:02 AM
    You haven't been 'taken advantage of' and I fail to see why your ill health is of relevance.

    One company charging more for a product than another company isn't 'taking advantage of'.
    • dunstonh
    • By dunstonh 3rd Sep 13, 10:47 AM
    • 84,066 Posts
    • 49,075 Thanks
    dunstonh
    • #9
    • 3rd Sep 13, 10:47 AM
    • #9
    • 3rd Sep 13, 10:47 AM
    However, i have ill health and do feel i have been taken advantage of.
    You have not been taken advantage of. You are written to in advance of each renewal telling you their price. You agreed it.

    I have scrupulously examined the Halifax and my new insurers policies and there is no advantage in the former.
    Fair enough. However, it does seem unlikely given the difference. Remember that policy documentation is often generic to cover all options. You may not have selected some options with the new one that were present on the old one.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Goldiegirl
    • By Goldiegirl 3rd Sep 13, 10:51 AM
    • 8,288 Posts
    • 47,134 Thanks
    Goldiegirl
    The Halifax insurance would have covered the contents of the house too...... Please make sure your new policy covers the building and the contents
    • magpiecottage
    • By magpiecottage 10th Sep 13, 8:58 PM
    • 9,070 Posts
    • 5,544 Thanks
    magpiecottage
    The Halifax insurance would have covered the contents of the house too...... Please make sure your new policy covers the building and the contents
    Originally posted by Goldiegirl
    Not necessarily. They offer either or both.
    It is a statement of fact, not an advertisement, that I investigate complaints against small firms of financial advisers for a living.

    That is why I know my way around both the FCA Handbook (for financial businesses) and the Conduct of Authorised Persons Rules (for CMCs).
  • Paganman
    Halifax Home Insurance
    Halifax were charging me an astronomical amount for home insurance and when I queried this with them they explained that they had made the rebuilding cost "unlimited" for "my peace of mind". This gave an annual premium for a large end-terrace of over £1250 not including contents (the buildings insurance element of this was £1200).

    I have asked them to explain when this was changed (if it was changed) as I did not (and would not) have agreed or wanted unlimited cover to rebuild an end-terrace property.

    The exact same quote but with a reasonable rebuilding cost of £300k resulted in the Halifax quote coming down to just under £400 per annum.

    I believe I was mis-sold an element of the insurance (like the op this was also taken in conjunction with a mortgage via Halifax) I can see how it would be in Halifax's interest to have an unlimited coverage for rebuilding costs on a property with an 85% mortgage on it but this wasn't discussed or made clear to me either at the time or at any point since...
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