Home Insurance actual cover much less than stated on policy statement

katespendstoomuch

Hi all
Have just rung my current insurer (been with them for over 5 years) to see if there's anything I can do to reduce my renewal premium as it has gone sky high...

My renewal document (and all past statements of cover) states contents cover of up to £50,000 - as it has been since we upped it a few years ago, yet the woman on the phone advised that actually we were only covered for £22,000 and some-odd and that if we had a claim that was over this amount, we would be asked to pay something to cover the difference. She very helpfully said that if I wasn't happy with that level of cover, I could always up the cover and pay the increased premium!!

I was completely outraged and can't believe that they could get away with this legally - stating on my statement of insurance that I am covered for one amount, but actually only covering me for another??

Needless to say, I have cancelled and taken out a policy with another insurer at much lower premium, using comparethemarket.com, but I wondered whether anyone else had come across this before??

Thanks
Kate

Quentin

Sounds like the woman on the phone wasn't fully trained!

If you have documentary proof you were covered up to £50,000, then go off that, not what a CS agent tells you on the phone!

dunstonh

Tese bedroom/postcode rated policies are up-to a certain amount but it doesnt mean you will get the maximum amount. Its only on specified sum assured policies you get the amount you say (unless you are over insuring yourself, in which case you dont).

What type of policy was yours?

Quentin

Why do you say that? The OP increased their cover to £50,000 a few years ago according to the OP.

And "up to" policies do cover you up to the amount stated, irrespective of how many bedrooms you have. If your cover is less than the max, then that would be clearly stated in the documentation. Their whole idea is to cut out the need to worry about being underinsured.

(Obviously an up to £50k cover only would pay that out after a total loss of contents worth £50k)

dunstonh

Why do you say that? The OP increased their cover to £50,000 a few years ago according to the OP.

Yes, but we dont know if that moved it to a bedroom rated policy or if it was already on one or it moved to a "plus" version or whatever.

And "up to" policies do cover you up to the amount stated, irrespective of how many bedrooms you have. If your cover is less than the max, then that would be clearly stated in the documentation. Their whole idea is to cut out the need to worry about being underinsured.

It is. However, I recall seeing a Royal Sun Alliance policy that was bedroom rated up-to £35,000 on the marketing but in the policy it had a maximum sum insured with 1 and 2 bedroom properties that was lower than the up-to figure.