Home and contents insurance renewal and unjust inflated premium..

savinghru

Our insurance premium renewal is coming up for renewal...(Aviva) no claims in 12 years with them, has shot up to over £500 (previously around £300) I phoned to ask why the increase, and was told we are in a high flood area...no we are not BTW. They refused to drop the price and even agreed I better go elsewhere.



I now have a letter from Sepa confirming what WE already know, and that is we are in a LOW flood area, and will never be at risk of flooding, and the insurance is illegal in adding this addition using this as a reason for the increase. We also have never had a home visit by the insurers.

Do I now have any redress with the company as I have the proof that we a low risk, and the insurance have not given us a written explanation as to how they came to the "high" risk factor.

It makes me so mad that they think they can get away with this, and although we could insure elsewhere, a part of me wants to fight this, but I don’t know where to start.....any suggestions please?


Can I ask them to start an investigation?


Can I insist someone from the company comes out to do a house visit?
(This alone will prove we will never be in a high flood risk)

I wonder how many other people are having this "add on" without their knowledge?

Suggestions please?

rs65

savinghru wrote: »

Can I insist someone from the company comes out to do a house visit?

No. Why not just get cover elsewhere? Do you really want to stay with a company that you clearly have issues with?

InsideInsurance

Insurers, generally, are like anyone else, they can offer a price and you can decide if you want to accept it or not. As long as they arent breaking the law by loading your premiums because of your race or another legally restricted "ism" then its purely a commercial decision.

As has been said, you dont like their price? Buy from someone else.

savinghru

Yes it is all very well and good to go elsewhere, and I will be doing exactly that, however it is the principal.....if Insurance companies are bumping up their premiums with this "you are in a high flood risk area" excuse and without any explainations on how they came to that conclusion, then I think it is only right and fair that the consumer/ home owner queries this. I have it in black and white from the local authority and I quote "the current licence under which interested parties, such as insurance companies, are able to gain access to the Flood Map does not allow them to use it for commercial purposes (e.g to adjust their premiums)"

As I said before, it is the principal. And how many other people are being charged this premium by ANY insurance company, without their knowledge. I wouldn't of been any the wiser if I did not phone them and query the massive price increase. It is something that EVERYONE should be asking about when they take out home insurance cover.

FlameCloud

What makes you think that Aviva havent comissioned their own flood maps?

savinghru

They have, but they cover England, Wales and Ireland...not Scotland!

savinghru

And you are still missing the point....

...the current licence under which interested parties, such as insurance companies, are able to gain access to the Flood Map does not allow them to use it for commercial purposes (e.g to adjust their premiums)"

It does not matter if they have their own flood maps or not. They should not be using this "excuse" to bump up premiums.

FlameCloud

Aviva does, at least for the more inhabited areas of Scotland.

I think you are missing the point. The restriction you have said is if they are using somebody elses data. If they have created the data themselves, they can do whatever they like with it assuming they dont fall foul of DPA laws.

You also still dont appear to get that insurers can price the risk as they see fit, and not have to give you a reason for it.

dunstonh

Aviva will use the postcode to determine their risks. Somtimes the postcode will include properties at risk and not at risk. It cannot narrow it down much more than that without significantly increasing the cost for everyone. So, it makes a choice of what it feels the risk is for that postcode and that is what it retails its product at.

Like any retail product, you dont have to buy it if you dont want it. They can choose what they retail it for.

Are you even sure that it is only for flood? Call centre staff are notorious being examples of a little knowledge being a dangerous thing. There could be a number of issues and it may be that there is only a slightly above average risk of flooding but in conjunction with other risks they may push the risk above their threshold for certain pricing.

opinions4u

There could be numerous reasons for a sharp premium increase.

1) Claims history in the post code area (a couple of burglaries where both properties were insured by Aviva could make a significant change)

2) The company may be trying to reduce market share / exposure in a particular post code area

3) The company may be trying to increase profit margins

4) There may have been a complete realignment of their pricing model nationally

5) New flood information may have genuinely come their way (some watercourses only become a threat once a century so assessing risk isn't a perfect science)

6) Generic claims performance on the type of policy you have when compared to other policy types in their product range

Lots more that people could add to the list.

Regardless. They can charge what the hell they want to charge. You can do business elsewhere if you want.

Principles? Stuff it. Get the best deal for you and don't lose sleep over a company that's priced themselves out of a market.

savinghru

The guy I spoke to on the phone was actually quite sympathetic and helpful, and he was the one who gave me the address to check out their flood map, where we live in the remote highlands of Scotland, in a population of 150, scattered in a very large area, Aviva’s flood map does NOT cover the area where our house is situated.



I DO actually “get” that the insurers can price their policies as they see fit, but as a consumer who has been with them for 12 years without a claim, it is quite disheartening to see our premiums shoot up from, (and I’ve just checked) £233 to £529, in a year. The guy on the phone spoke to his supervisors who said we had the increase because our area showed as a high flood risk...we are not even on their map....and on the Scottish local authority flood map, if they even bothered to look at that for their information, show quite clearly, we are not in a high flood risk.....that’s what gets my goat...that Aviva can be allowed to “add” false and illegal information onto their policies and charge these additional costs. Give the guy some credit, on the phone HE even said to me to go elsewhere!


BUT.....What in the hell has happened to loyalty from these companies????



I really appreciate the advice from the recent two people, you have actually given me what I was looking for from my original post, constructive advice, opinions4u thank you for summing it up so simply.... you are quite right.....why am I wasting so much time with this? ... as I’ve said before it is the principal, and I don’t like being ripped off by greedy companies, but we are moving to another policy holder who can give us more on a policy than Aviva for £190 and with the same buildings and contents insurance prices. What a Hugh difference....surprise, surprise!!



Greed has lost this company some long term customers.


But a word of advice to others who look at Aviva for their home insurance....ask about their policy for flood risk for your area before taking out insurance with them!!!! Especially if you have been with them for a number of years.


After the disater that was the Japan tsunami, I think most insurance compaines are looking at this as a way of increasing premiums....just because they can!!