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Changes to home insurance policy

I am paying £158 to Policy Expert for home and contents insurance. Having installed a 24 hour monitored security system I thought I should inform the insurer. So I did but what I didn't realise was that they appear to think their policy holders all have STUPID stamped on their foreheads.
They told me they would close the original policy, give me a refund at some point in the future, and that I would have to buy a new 12 months policy at the new rate. I was then told the new policy would be over £500!
I explained that not only was this unreasonable and unacceptable, but I thought a referral to the Ombudsman would be in order, as would publicity about this practice on your website.
I was immediately told the original price and policy would be maintained and that a "note" would be put on my record that I had improved my security arrangements.
This is an outrageous way to treat policy holders, and an insult to our intelligence.

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