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Can I have overlapping House Insurance cover?

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Hi,

I am currently insured with Esure and have fully paid for my policy which ends round May 15th. Their terms state that if I cancel my policy they will charge me £45 (which seems a very high amount) for the privilege of no longer taking on my risk.

I have a half price quote from Tesco for my next period of cover of £210 plus a £50 giftcard if I buy the policy before 1st April, and £160 for a year's cover sounds good to me.

Now, I don't mind losing a 1.5 months cover from Esure to get the deal with Tesco, but I don't want to have to pay the £45 cancellation fee to Esure.

So, my question is - Is there anything wrong with having overlapping cover for about 6 weeks? I realise that I could only claim from one company if I made a claim.

Any advice or help anyone could give would be greatly appreciated.

Many thanks

Face

Comments

  • Hi there

    You should not insure twice, as it could be viewed as attempting to gain benefit from 2 policies in the event of a claim.

    I suggest you speak to e-sure to find out what they will allow as a refund for any unused premium for the 6 weeks you will not be using (this should outweigh the £45 charge) and then cancel the policy correctly.
    In the beginning, the universe was created. This made a lot of people very angry and was widely regarded as a bad move.
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  • Quentin
    Quentin Posts: 40,405 Forumite
    As this is primarily a money saving website, why not just remain "in ingnorance" of the nuances of setting up next years policy 6 weeks early and make sure you get the savings on offer instead?
  • dacouch
    dacouch Posts: 21,636 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I agree with Quentin its not technically correct for the op to do it but it would only be an offence if she tried to claim for the same item off of both Insurers. In addition the ABI have a code on how claims are settled where there are two policies in effect.
  • dacouch
    dacouch Posts: 21,636 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I've just read esure cancellation information and it advises the administration fee is £25 if you cancel in your first year with esure but this reduces to only £6 if you cancel after the second year.

    I would recommend you ring them up as they may be telling you the wrong thing on the admin charge.

    If you have had a claim in the current Insurance period their is no refund of premiums and you will have to pay any remaining instalments.
    • If you cancel your policy before the first renewal date, we will refund the part of your premium which you have not yet used less a £25.00 administration fee to take account of our costs in providing your policy. This fee may change from time to time. We will tell you if it changes. If the amount of premium you have paid and not yet used is less than the administration fee you must pay us the difference. If a claim has been made, we will cancel your cover but will not refund any of the premium and if you are paying by instalments, you must still pay us the balance of your full annual premium.
    • If you cancel your policy after the first renewal date, we will refund the part of your premium which you have not yet used less an administration fee of £6.00. This fee may change from time to time. We will tell you if it changes. If the amount of premium you have paid and not yet used is less than the administration fee you must pay us the difference. If a claim has been made, we will cancel your cover but will not refund any of your premium and if you are paying by instalments, you must still pay us the balance of your full annual premium.
    http://www.esure.com/home_insurance/policy_faqs/#faq_18
  • FlameCloud
    FlameCloud Posts: 1,952 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It could lead to problems if you tried to claim however, as the insurers have every right to make you claim half from each of them (assuming they both cover the same loss equally)
  • Quentin
    Quentin Posts: 40,405 Forumite
    Face wrote: »
    I have a half price quote from Tesco for my next period of cover of £210 plus a £50 giftcard if I buy the policy before 1st April, and £160 for a year's cover sounds good to me.

    Buy your policy before 1st April, and put the start date to be from the end of your current policy.
  • Face
    Face Posts: 32 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hi,

    Thanks you all for taking the time to reply.

    I'll contact esure and see what they say about the cancellation fee, epsecially as it's a fully paid up policy.

    Thanks again,
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