home insurance underpayment

cosmicgirl13

I have recently been contacted by my home insurance provider informing me there is an underpayment of approx £200 on my home insurance account because the company forgot to adjust the monthly direct debit instalments for approx 2 years!! (therefore the deductions did not equal the annual costs).

I have been informed that although no error on my part, I can either repay the approx £200 in one lump sum or the underpaid balance will be added to my mortgage account and I will accrue interest on this too.

After discussing this with the company they have offered to pay 1/2 of underpayment. I am still not happy at having to pay the best part of £100 either as a lump sum or accrue interest if added to my mortgage.

An advice or people in a similar position?

JohnDave

Is this Halifax? If so I have a similar problem.

cosmicgirl13

Hi

Yes it is. Still no resolution as yet but will be contacting the financial ombudsman.
On a positive point, after reading advice on this site to shop around and (particularly as renewal is due next week) have saved myself £200 p.a with another agent for the same level of cover for building and contents.
Have cancelled renewal with halifax and will be actively looking at reviewing all other aspects of my finances for value for money in future.