Policy expert Building/contents insurance. Penalised for working.

spikem

Just checked on my policy and on speaking to policy expert found my premium has increased by £70. The reason being I went from being retired to taking on a part time job.

Although my job is only for 4 hours three times a week and keeps me occupied their view is "you are either working or not and in this case you are so you pay."

I can understand the risk if you were absent from your home for 40 hours a week but this is just purely being penalised for working , not to mention that if you do work you therefore have some extra money to pay inflated premiums.

What comes next? If you attend a part time course at a local college three or four times a week, or you go babysitting for your grandchildren or even just love being out shopping will you have to pay extra? Not at the moment but it's the same principal except you are not earning a wage.

Policy is now cancelled, didn't like the auto-renewal anyway. Something to bear in mind if you are of retirement age and want to keep yourself active.

forgotmyname

I find the opposite with motoring insurance, putting retired or not working for other reasons actually increases the premium, whilst removing commuting.

Adding employment adds commuting and lowers the premium. Go elsewhere?


Has the premium increased or is the £70 a charge for a change in the policy terms?

paddyandstumpy

Policy expert are a broker, so you'll prob find that most of the £70 is Admin fee (if at mid term).
If your renewal has gone up £70, it won't just be because of occupation.
Rates in the HH market have gone up, IPT has gone up, flood re had been introduced straight away adding 2% to all insurers costs, most of whom are passing the cost on.

spikem

My renewal is up in three weeks. As I was talked through it the increase appeared as a direct result of the Employment. There were no other charges involved and the manager also stated the same and they couldn't get around it. The original price had only gone up by a small percentage prior to this.

forgotmyname

how much was the admin fee though? Ask for a breakdown of the charges. Possibly £5 for a premium adjustment and the rest charges?

paddyandstumpy

Perhaps because they've amended to daily unoccupied from permanently occupied? Some insurers still use this I imagine, not sure for definite who would and I don't know who's on the P.E. panel anyway.

Or, another idea I've had, is your current underwriter only insures retired, or gives it a massive discount. Now you've added occupation, either that discount is going or the underwriter is declining, meaning you've been offered the next cheapest on the panel.

This would be more plausible if cover limits were changing, not occupation. But I'm struggling to justify the load if without it the premium was similar.