Home Insurance cancelled before extension works start

fool-on-the-hill

Hi all

I am about to embark on a kitchen and loft extension to my (very standard) Victorian terrace. As I have done before previous building works, I called my insurer (Post Office) before the builders start next week, to let them know.

My surprise result is that my policy has now been cancelled and I am left trying to find a new insurer with 4 days notice! Apparently they can't give me a reason - just that the underwriter has said they can't insure. At all.

It seems very odd to me - are they allowed to cancel insurance in this way? And does this mean I now need to tell any new insurer that I have been refused insurance?

Any thoughts/experience welcome.

[Deleted User]

That reminds me of a story on R4 Money Box. A motorist had rung his insurance after he moved house to tell them his new address, and they cancelled his insurance there and then, with no notice at all. He didn't even have any off road parking.

dunstonh

are they allowed to cancel insurance in this way?

yes, if the changes you are making take you outside of their criteria.

And does this mean I now need to tell any new insurer that I have been refused insurance?

Yes. However, its not a major issue that will prevent cover.

huckster

fool-on-the-hill wrote: »

Hi all

I am about to embark on a kitchen and loft extension to my (very standard) Victorian terrace. As I have done before previous building works, I called my insurer (Post Office) before the builders start next week, to let them know.

My surprise result is that my policy has now been cancelled and I am left trying to find a new insurer with 4 days notice! Apparently they can't give me a reason - just that the underwriter has said they can't insure. At all.

It seems very odd to me - are they allowed to cancel insurance in this way? And does this mean I now need to tell any new insurer that I have been refused insurance?

Any thoughts/experience welcome.

Phone them back and ask to speak to a Manager.

I could understand the cancellation, if you were going to be doing the works yourself. Insurers don't always like this, when it is a extension/roof conversion. Normally when you contract builders to do the work, they would have Insurance for the contract works and any damage they caused. Therefore it is less of a risk.

When you speak to a manager, offer to email/fax over details of the works, so that this can be considered further.

Nb. The other possible issue, is the value of the works, compared with the rebuild cost of existing property. The works may be too major.

If you contact a brokers such as Home Protect, they should be able to arrange cover if need be.

Quentin

fool-on-the-hill wrote: »

....
And does this mean I now need to tell any new insurer that I have been refused insurance?
.

No (Ignore the incorrect advice you have been given above in #3 - do not tell any insurer you have been "refused")


This is not a refusal you have to disclose.

They simply don't cover the changed risk you now have. You are thinking of the need to disclose cancelled policies following breaches etc

Which is not what has happened in your case

InsideInsurance

Is it that they wont cover you once the work is complete or they wont cover you whilst the work is being done? Some standard home insurance doesnt like major work being done but that only kicks in if you are moving out whilst the works happen and there you have home renovation insurance policies.

I disagree that you need to declare it, effectively you are being given a choice of dont do the work and keep the policy or you cancel the policy and go elsewhere for insurance and do the work. Presumably you arent going to cancel the project due to the insurance so you are choosing to cancel the policy.

fool-on-the-hill

Thanks all - I appreciate that some insurers might not want to insure a bigger house (say) and so might choose not to offer me a renewal.

But I was surprised to hear they wouldn't insure during the build works - have standard home policy wording changed? So that insurance during building works is no longer included as I thought it was previously?

I suppose there always has to be a line drawn somewhere in terms of what works are covered - where does an "extension" become a "rebuild"!

Just hope I can find a new insurer now then...

huckster

fool-on-the-hill wrote: »

Thanks all - I appreciate that some insurers might not want to insure a bigger house (say) and so might choose not to offer me a renewal.

But I was surprised to hear they wouldn't insure during the build works - have standard home policy wording changed? So that insurance during building works is no longer included as I thought it was previously?

I suppose there always has to be a line drawn somewhere in terms of what works are covered - where does an "extension" become a "rebuild"!

Just hope I can find a new insurer now then...

You seem to be ignoring the advice given. Sometimes when you speak to a company, you get the wrong person who does not really know what they are doing. The could offer no explanation, so this may be the case.

I would suggest a phone call to them tomorow to see if you can speak to manager to check what you were told. If it definitely a NO, then you may struggle to get cover, other than through a brokers. I suspect that if you phoned many companies to arrange a new policy and mentioned the works starting very soon, they may not want to quote.

A standard existing policy may cover minor works, but not a new extention being added.

fool-on-the-hill

@InsideInsurance no - they won't insure during the build - we have a standard JCT contract. And we are living in during the build. I expect the maximum build contract might be the issue - side return and loft take contract sum to c.£70k (London prices!)

I also agree about the declaration. Presumably if I cancel the build they would reinstate the insurance. So I am choosing to cancel because they don't cover my change new circumstances - ie a bigger house.

Thanks

Quentin

fool-on-the-hill wrote: »

Just hope I can find a new insurer now then...

if you do find problems getting cover then see if a local broker (not Swinton) can help

dunstonh

As always, the key to whether you should disclose is the way the question is asked.