Home insurance. . . Is it always like this?

monkey_shoulder

We live in a 1930's end-terrace house with a slate roof. Recently our insurer (Abbey, now Santander) sent the renewal notice, and the premium had gone up quite a bit since last year, so we went on compare the meerkat or whatever to see if we could find a better deal. We found plenty of cheaper quotes and so first approached Santander directly to see what they could offer. As we went through the schedule we pointed out to them that according to their policy document, we were "mid-terrace", and had a "tiled roof". When we corrected their error they told us that:
1. we would be liable for even larger premiums because of the change,
2. had we made a claim, our insurance would be invalid!

Now looking back over the policy schedules of previous years, when the policy was taken out in 1995, the property is listed as end-terrace, slate roof! The error was entirely theirs.
Can they do that?
Surreptitiously change the schedule, then refuse to pay out?

We also discovered why our premium had gone up. In 2009 we had a problem with a plumber, who had failed to cap a rising main properly and flooded the kitchen. The contractor repaired the damaged pipe but the damp did not seem to be receeding and he said it would cost £1,000 to reroute the main water supply to solve the problem. We then contacted our insurers to find out if we could claim for this.
They sent a man round to assess, but unfortunately, no one was home when he called. After further phone calls to arrange a revisit, they said that we were covered only to trace the leak, not repair it, and no way would they pay for relaying the water main! We told them not to bother sending anyone round.

Despite the fact that the assessor had not gained access to the property, the failed visit appeared on our policy as a claim! Of course now that our house had a suspected risk of water leaking from an underground pipe, up had gone the premium.

What exactly is the point of home insurance, if the insurer will use every trick in the book to avoid paying out and refuses to pay for work to actually fix the problem?

M_S

dunstonh

Can they do that?
Surreptitiously change the schedule, then refuse to pay out?

No. That is either a sales patter (as I don't believe policies dont differentiate between end or mid terrace in that way) or a clerical error. Neither would result in a rejected claim.

Despite the fact that the assessor had not gained access to the property, the failed visit appeared on our policy as a claim

That is correct. Its not just a payout that you have to declare but any loss or claimable event whether you claim on the policy or not.

What exactly is the point of home insurance, if the insurer will use every trick in the book to avoid paying out and refuses to pay for work to actually fix the problem?

They don't. You are just falling for typical low skilled bank clerks with sales targets saying what they can to keep or get business.

monkey_shoulder

Thanks for your reply dunstonh.

I am still sceptical, and I don't understand what I am paying for. We had a real problem, rising damp caused by an underground water leak, and they told us that all we got for paying them hundreds of pounds a year was a man who would come round a tell us that there was a leak, which we already knew, but no way would they be paying out for the repairs. Oh yes, and we will be putting your premiums up.
Still, it is sorted now, it cost us £1200 to reroute the main. I suppose what I should be asking is - Do all insurers do this? Should I be looking for some special cover?

We have a new problem. There is a crack in the chimney stack, probably caused by frost damage. Repairs are going to be very expensive. It will cost about £1000 just for the scaffolding. Is it worth phoning the insurance company?

My guess is that they will say, oh you are not covered for that, it shows that you have not been maintaining the property. We have looked through the policy and I can see dozens of get-out clauses.
Oh and by the way, that could be a sign of subsidence so your premiums are going up.

I am frightened of even approaching the insurer for fear that they will simply squirm out of paying for repairs then whack up the premium. Some of the insurers on compare the meerkat etc will not even quote if flood or subsidence are mentioned.

I am serious.

What should we do?

m_s

dunstonh

Perhaps it may be better for you to have a word with a local broker. They give support and advice in cases like this and will let you know what you need to do and what it means.

dacouch

If it's frost that has damaged the chimney it would not be covered by any home insurance as it's a maintenance issue rather than something that is covered by a home insurance

xMonsoonx

I don't know of any home insurer that will cover the cost of repairing the leak, thats what maintenance and service policies like home serve etc for.