Raising the Premuim after claim

Hi_Coo

I recently had to make a claim for buildings and contents due to water damage - the insurance underwriters have paid in full.

However I got a letter from the brokers telling me that the repairs have increased the value and are asking me for more money. In the first instance, the damage has taken nearly two months to repair and has only just been completed - the current policy has approx 6 weeks to go before renewal (1st Jul) and I paid in full for a 12mths coverage. I have read the T & C that were sent with the policy and there is nothing in there that tells me in the event of a claim the broker can raise the premium.

I have dealt/claimed with other insurance companies and NEVER had this happen before - is this now industry standard and as I've not claimed in years I wasn't aware of it or are they just trying to get some of their costs back? Are they allowed to do this as it seems to me I entered a contract with this company and now they are changing it to suit themselves.

Any advice on this is appreciated. Thanks

stator

What on earth are they on about?

Are you sure they're not just telling you the premium is going up upon renewal?

Seems very odd to me, I'd be very sceptical just like you!

custardy

Hi_Coo wrote: »

I recently had to make a claim for buildings and contents due to water damage - the insurance underwriters have paid in full.

However I got a letter from the brokers telling me that the repairs have increased the value and are asking me for more money. In the first instance, the damage has taken nearly two months to repair and has only just been completed - the current policy has approx 6 weeks to go before renewal (1st Jul) and I paid in full for a 12mths coverage. I have read the T & C that were sent with the policy and there is nothing in there that tells me in the event of a claim the broker can raise the premium.

I have dealt/claimed with other insurance companies and NEVER had this happen before - is this now industry standard and as I've not claimed in years I wasn't aware of it or are they just trying to get some of their costs back? Are they allowed to do this as it seems to me I entered a contract with this company and now they are changing it to suit themselves.

Any advice on this is appreciated. Thanks

Im wondering if they are saying this because your house value has risen
to use car insurance as an example
if you change aspects of your policy mid term it can raise the premium costs
eg occupation,job etc
Ive never claimed on house insurance so have no experience of claims

cattie

It is common for policy premiums to substantially increase on renewal after a claim. It is also common practice for most major insurers to increase their premiums each year even if customers have not made any claims, as more & more people generally are making claims & the costs have to be met. The insurance companies have had a lot of claims due to flooding over the past few years & their profits are not what they once were due to this.

However, I've never heard of a company trying to increase the premium while the existing annual policy is still in force, so would definitely query this, writing to the head office of the insurance company if necessary.

Hi_Coo

Thanks Cattie - I was expecting to pay a higher amount on renewal (same thing happened when I claimed with Direct Line about 8yrs ago on a previous property) but did not expect for the contract to change in the middle of an annual policy. That's a good idea I'll contact the head office in writing instead of phoning.

FlameCloud

cattie wrote: »

It is common for policy premiums to substantially increase on renewal after a claim. It is also common practice for most major insurers to increase their premiums each year even if customers have not made any claims, as more & more people generally are making claims & the costs have to be met. The insurance companies have had a lot of claims due to flooding over the past few years & their profits are not what they once were due to this.

However, I've never heard of a company trying to increase the premium while the existing annual policy is still in force, so would definitely query this, writing to the head office of the insurance company if necessary.

Not really, the recent floods would have cost public facing insurers very little. What has cost them lots is investment, but thats another topic.

They cannot amend your premium halfway through unless the risk itself has changed. I would clarify if it is indeed the renewal they mean as sometimes they are worked out quite far in advance.