Post Office won't renew house insurance

elvis_girl

I have had house (buildings & contents) cover with the Post Office Insurance for about 5 years & I have just received a letter to say they won't renew my cover next year. I have never made a claim & nothing has changed on the policy since last year. About 4 years ago I took out a remortgage & one of the conditions was that I kept the same insurance & that I sent the insurance company a copy of a structural engineers report which I had done. I have complied with both of these but what do I do now- Help! Thanks in advance

steve1980

Why did you have to keep the same insurance? I assume it's because you have subsidence on your property or you live in an area known for subsidence?

If so then you'll probably find that the Post Office do not want to cover properties which could suffer.

There are other companies who will cover you, probably cheaper than the post office!

dunstonh

Its possible that they have reviewed their risk tolerance and you no longer meet that criteria. There are quite a few more insurers that are now cherry picking and rejecting higher risk cases.

it is unlikely to impact on your mortgage as its your insurer that is now saying no. You just need to find a new insurer and let your lender know. A local broker is likely to be a better option than trying online if you do have (or have had) structural problems.

elvis_girl

Yes I was going to write to them anyway as it doesn't seem right that they can just decide to drop you as a customer without giving you a valid reason, and they were happy enough to take the money for the last four years before they decided it was a problem. Very disappointed in the Post Office as I have always recommended them. I think a local broker is probably the best way to go, I just hope this isn't going to be a major headache.

elvis_girl

Weirdly it seems that the Post Offices "panel of insurers" only has AXA to cover Northern Ireland, and it seems AXA aren't covering ground floor flats hence why they won't offer a renewal. Worked out ok for me as I've managed to get cheaper elsewhere & I'll also move my car insurance while I'm at it

RuthnJasper

I had exactly the same problem with Post Office Insurance. When I 'phoned to query why they wouldn't renew they said that I was "too close to a watercourse and therefore at risk from flooding". I couldn't believe it! There is a tiny stream about two metres from the edge of my street, which is down an almost-vertical bank at least one metre steep. It is also a 'managed' watercourse, in that it feeds into local watercress beds, and the growers never allow the water to get too deep as it would damage their crops. Even a little sparrow couldn't drown in it!

I explained all this, but they weren't having it, so I found an alternative provider. They just had a new blanket-policy to exclude ANYONE who lived within a certain distance of a watercourse. I checked with my neighbours, some of whom have lived here for decades, and our street has NEVER flooded.

Good luck OP, hope you get something sorted. You never know you may get cover elsewhere that's a bit cheaper - look on it as a potential for saving a few quid! xx

lisyloo

as it doesn't seem right that they can just decide to drop you as a customer without giving you a valid reason

I'm afraid they can drop you just as you as a customer can drop them.
I'm not sure on whether there are any regulations that say they have to give you a reason, so I'm not sure on that, but usually they would tell you.

huckster

I thought that BISL who run the Post Office policy used various Insurers to underwrite the policies. If the Insurer has been kept the same since inception, perhaps it is the Insurers that have withdrawn the cover and not BISL. The question is then whether BISL can rebroke the policy to another Insurers, rather than not offer renewal.

_Persephone

huckster wrote: »

I thought that BISL who run the Post Office policy used various Insurers to underwrite the policies. If the Insurer has been kept the same since inception, perhaps it is the Insurers that have withdrawn the cover and not BISL. The question is then whether BISL can rebroke the policy to another Insurers, rather than not offer renewal.

OP mentioned further up that there was only one panel member (AXA) to cover her area.

thepeterleeknowledge

firstly an insurer has no obligation to continue cover and as BISL act as a broker they have a continually changing panel of underwriters which for northern ireland is reduced unfortunatley. also underwriters constantly change the underwriting criteria as ultimatley all insurance is based upon risk and as BISL act as a middleman they have no say in the matter. As long as they notify you prior to expiry they reserve the right to decline an offer for insurance based on unacceptable risk so you're snookered I'm afraid. Also they don't need to provide you with any details as too why because at the end of the day you don't have a contract beyond the end of you're current policy. My advice would be to avoid BISL like the plague they will charge you for anything and have got the t+c's very should we say cleverly worded and have some very obnoxious advisors and pig ignorant managers - if you're going elsewhere avoid Bradford and Bingley, Budget, IbuyECO, Dial Direct, Quotemart and Santander Home Options as they are all operated by the same cowboys.

_Persephone

thepeterleeknowledge wrote: »

You sound like a bitter ex employee :rotfl: Did you work in the Peterlee branch at all?