Halifax home insurance - no refund when cancelling??

Pipx

Hi,

My partner currently pays £37 a month for buildings and contents insurance, which he took out with his mortgage providers. I have got him a quote for £9 a month for the same cover on a comparison website. However, when I looked at his halifax policy it states that you can only cancel within the first 30 days, or in the following circumstances;
- if you take out another policy with them
- you no longer own the property
- or you suffer a total loss

I expected some sort of cancellation fee, but this indicates that he has no choice other than to continue to pay until the end of the policy. I have never come across this before - can they do this??
Thanks

mikey72

Not normally.
Have a look at

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

jonesMUFCforever

I would be very surprised to get a quote for both buildings and contents for £9 month.

mikey72

Mines about £18 a month, MIL is only £11, both on detatched houses, so £9 doesn't seem to be wrong.

adamc260

I'd really question if it is "the same cover" for £9 a month...

Your expecting an Insurance company to completely rebuild your property and replace all your contents for £108 a year? =/

Too many people say 'Same cover' when all they mean is 'Oh it has accidental damage... oh the rebuild figure is the same'. It goes a bit further than that.

dunstonh

Halifax pricing is typical of bank rates (i.e. more expensive). However, £37 to £9 would indicate that it is not like for like. Also, a £9 premium, even in the cheapest areas, would indicate a policy cut to the bone in features/options/coverage.

opinions4u

Halifax policies from 1998 to 2008 were monthly contracts with annual premium reviews and no penalties for cancellation. I'm fairly sure my policy (which is still attracting a staff discount ) remains on these terms. It's also extremely cheap regardless of that discount!

Judging by their web site, the policy now being sold is an annual contract. They do lay out clear terms where a pro-rata refund of premium will be repaid on cancellation (property sale, for example).

I don't think the FOS link above will apply, as the customer treatment is fair where there is a clear change in circumstances / no risk to insure anymore. Be interesting to test it though!

mikey72

opinions4u wrote: »

Halifax policies from 1998 to 2008 were monthly contracts with annual premium reviews and no penalties for cancellation. I'm fairly sure my policy (which is still attracting a staff discount ) remains on these terms. It's also extremely cheap regardless of that discount!

Judging by their web site, the policy now being sold is an annual contract. They do lay out clear terms where a pro-rata refund of premium will be repaid on cancellation (property sale, for example).

I don't think the FOS link above will apply, as the customer treatment is fair where there is a clear change in circumstances / no risk to insure anymore. Be interesting to test it though!

I can't find any terms, and even if there where, the FOS overrides the Halifax, no matter what they write.

opinions4u

mikey72 wrote: »

I can't find any terms, and even if there where, the FOS overrides the Halifax, no matter what they write.

They're there, but I can't be bothered finding the links again. They re-iterate what the OP says.

The upheld FOS case relates to where a car has been sold. The new Halifax policy also complies with that ruling where the property has been sold.

So it's not the same as a customer wishing to break a contract to move to a competitor to insure the same risk. Hence my suggestion that, as a case study, that particular FOS link isn't of use. The FOS haven't stated that the Halifax approach to things is wrong or unfair.

mikey72

As I couldn't find the link either, fair enough.
We'll leave it to the op, I'm sure it'll be worth a phone call, and he can hopefully tell us what the FOS say.
But I don't think you've actually read the FOS link, as it doesn't just apply to selling a car.

dunstonh

he can hopefully tell us what the FOS say.

Given their scripted response where they would like to look at everything, is it really it worth him telling us? Especially when the FOS wont look at it and will just forward his complaint to Halifax.