Lapsed Home B&B policy due to Covid

efflins

I've just been told by my insurer that my Home policy for B&B has to be treated as new business even after 10yrs as a customer because last March 2020 we didn't renew because of lock down. We did have a conversation with the insurers call centre at the time and understood that due to pandemic they'd consider it as mitigating circumstances. So now we've been told to apply as a new customer with attendant costs and time. Also Towergate is charging 2 admin charges one from the insurer Geo and one for themselves these 2 admin charges add up to nearly half he policy cost.  Is any of this normal?  What can I do? Thank you in advance.

dunstonh

Also Towergate is charging 2 admin charges one from the insurer Geo and one for themselves these 2 admin charges add up to nearly half he policy cost. 

Admin charges for what?

If they are treating the policy as a new plan, then at least you have missed nearly 12 months of premiums.

efflins

Towergate call it customer service charge and Geo calls it Admin fee so I suppose its a charge for admin involved for setting up policy. But nearly half the cost seems excessive. Are admin charges just another way monetise the process?

Weighty1

Without having the overall cost of the plan it's difficult to say that's it excessive.  If the policy is £100 and the 2 fees total £50, that's not really excessive.  Towergate and Geo both have staff, systems costs, regulatory costs and need to make a profit.  Obviously, if the cost is £1000 and the fees are £500 then that *would* seem fairly excessive but it all depends on how bespoke a policy you have.

Sandtree

Weighty1 said:
Towergate and Geo both have staff, systems costs, regulatory costs and need to make a profit.  

Geo and Towergate are also sister companies though; whilst that doesnt mean the above isnt necessarily true some of those costs may be shared.

If you arent happy with the total cost of buying a policy via Towergate why arent you shopping around rather than complaining about the cost?

Thrugelmir

efflins said:

I've just been told by my insurer that my Home policy for B&B has to be treated as new business even after 10yrs as a customer because last March 2020 we didn't renew because of lock down. We did have a conversation with the insurers call centre at the time and understood that due to pandemic they'd consider it as mitigating circumstances. So now we've been told to apply as a new customer with attendant costs and time. Also Towergate is charging 2 admin charges one from the insurer Geo and one for themselves these 2 admin charges add up to nearly half he policy cost.  Is any of this normal?  What can I do? Thank you in advance.

You are a not new business. Covid however has changed the risk to insurers. Requiring a reassessment of the business and cover they will be willing to underwrite and at what cost.