Huge bill for unpaid H&C Insurance

skywatching

Hi, can anyone offer advice please. My dad told me today he's had to pay the bank £900 for home and contents insurance that he's forgotten to pay over the last 5 or so years. For some reason he's overlooked the payments and didn't know anything about it and so the bank has been in touch with the big bill of £900 and demanded that it's paid. He and my stepmum went to the bank and had a meeting for over an hour with the bank lady telling them they've no alternative but to pay up, either in installments of about £75 per month or the whole balance due. He's written them a cheque just through sheer fright as the alternative was the bank taking them to court. I told him today to cancel that cheque till it's properly looked into but they're too scared to do this. I know they can barely afford it. A similar thing happened to me a couple of years back and the same thing happened to my sister just recently. We weren't insured for about four months and didn't know it. As soon as we found out we gave them an earful and moved on to another company. What should my dad do. I'm sure that if he'd made a claim for any home or contents damage over the last five years they'd have told him he weasn't covered. He mentioned this and they said he was covered, that's why he has to pay.

Astaroth

As they hadnt actually voided the policy for non-payment then he would have been covered as soon as he caught up with the payments.

At the end of the day they have been fairly reasonable on allowing him to pay by instalments. It is up to him if he wants to call their bluff or not. Of cause it will almost certainly be a case that their mortgage (if they have one) will require them to have buildings insurance so by refusing to pay could breach their mortgage terms and also result in the policies being voided and therefore he will have to declare to all future insurers that they have had policies cancelled for non-payment so the majority of insurers will never want to touch them.

skywatching

Hi, thanks for that. I understand how it works now. Seems a shame the bank couldn't have sent them a gentle reminder or three during the last 5 years though. I think their mortgage has been fully paid up for about three years.

ArchieB_2

Read the t's and c's. Most will have a clause relating to payment by Direct Debit - it may say that if you miss 2 instalments they will cancel the policy. Personally there is no way on earth I would have handed that money over - I would expect the company to chase payments and I believe this is a reasonable expectation. They can't turn round after 5 years and request back dated premiums. I would ask if you would have been covered in the event of a claim - I don't think the insurer would pay up! Surely there were renewal notices and correspondence?