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home building insurance

Hi i would like some information if possible.

My house had a burst pipe in dec and house vitually gutted.
At present the building work is in progress and i am waiting for contents list to be aopproved and paid out ( not sure when though). My policy claim was being delt with by crawfords liverpool office and i have had good communication with these but i have been told that the claim is now being delt by there team in birmingham. Does anyone know if this is usual ?
Also the insurance is axa but bought the insurance t through asda.
We were promised a paymrent every month towards cost of living as we arranged our own alternative accomodation. We never seem to get this on time and with our extra outgoings its played havoc with finances. my bank refused to pay dd last month as not enough funds. i called asda and they sent out a dd form with i filled in and sent. They never received this and i checked my account on 3/4/2011 and no payment was taken. i rang them and they said they sent a letter to my building site house saying it would be cancelled by certain date. as i dont live there and many builders in house tearing down walls and ceilings i didnt get this letter. The last thing i would do would be to not pay my insurance.
i rand asda and they said there is nothing i can do and as building work is ongoing in property they cant insure me. i find it all a joke and they were extremly unhelpful.
Can anyone advise if my current claim can be affected.

thanks
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