Confusion over Home Insurance - new policy or not!

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
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sams247sams247 Forumite
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edited 30 November -1 at 1:00AM in Insurance & Life Assurance
Hi.

We have just moved to a new house and wanted to stay with our old insurance co. We contacted them to change the address and asked if the contents insurance would alter at all as we were in a slightly larger house. We have been told that this would be a completely new policy and we would have to pay a deposit, have a year tie in to the new contract and actually, yes the premium would go up. So..... I said we'd like to research the market before going ahead to see if the new quote was fair. And they then said if we left them we'd have to pay £50! And I am Mr. Confused as why are we being charged for a new policy, taking on a new years contract and yet if we dont agree we are charged for leaving? Is this new or isnt it?

What can I do?
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Replies

  • kingstreetkingstreet Forumite
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    Is the cancellation charge for the new cover on the new home, or for the old cover on the old home?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • InsideInsuranceInsideInsurance Forumite
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    Are you going through a broker or direct with an insurer? My guess it is the former.

    By the sounds of it they are saying that they cannot amend the existing policy to cover the new property for some reason and therefore whatever happens that existing one must be cancelled.

    When you cancel a policy then in 95% of cases a cancellation fee is payable however it would seem that if you take the new policy out via them then they will waive that fee to secure your "new" business but obviously wont waive it if you go elsewhere.
  • sams247sams247 Forumite
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    kingstreet wrote: »
    Is the cancellation charge for the new cover on the new home, or for the old cover on the old home?

    the cancellation is for the new cover on the new home.

    And through insurance company directly.
    For those who believe, no proof in necessary. For those who don't believe, no proof is possible
    £2 Savers Club #40 - £8
    20p Savers Club #3 - £4.40
    £1 a day saving #51 - £18
    Virtual Sealed Pot 2020 #14 £.24.08/£100
  • sams247sams247 Forumite
    1K Posts
    Part of the Furniture 500 Posts
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    Ahh wait a moment, another call to them clears their point of view, not sure it helps though. they say the new contract is linked with the old one and so it carries a charge, so I guess they are saying that the old contract applies even though it isnt in use now we've moved?
    For those who believe, no proof in necessary. For those who don't believe, no proof is possible
    £2 Savers Club #40 - £8
    20p Savers Club #3 - £4.40
    £1 a day saving #51 - £18
    Virtual Sealed Pot 2020 #14 £.24.08/£100
This discussion has been closed.
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