Cancelling home insurance policy and broker fee deducted from calculation.

Issy_81

I took out a Sainsburys Home insurance policy for my house that I am selling knowing I would only need it for around a month, I paid the annual fee of £139.99 and was aware of their £25 cancellation charge.

I have been on the account section to cancel the policy and the refund amount is much lower than expected. Upon checking my policy schedule it says Household Insurance Premium £109.99, Broker Fee £30, Total Premium Paid £139.99. In their cancellation calculations they have taken the £109.99 figure as the starting point, so essentially costing me the £30 broker fee + £25 cancellation charge + 1 month of cover used. Is this normal or should the calculation be from the total premium paid of £139.99?

Thanks

Sandtree

Its not uncommon for intermediaries, but it should be in your policy documentation. 

Issy_81

The policy document states: outside of 14 days, we will refund your premium for the exact number of days left on your policy, less a fee of £25.

But there is no clarity on the meaning of 'we will refund your premium' as it says total premium paid is £139.99 and then Household Insurance Premium as £109.99.

Thrugelmir

Who did you purchase the insurance through? 

Sandtree

Thrugelmir said:

Who did you purchase the insurance through? 

Issy_81 said:

I took out a Sainsburys Home insurance policy

                         

SiliconChip

I currently have my home insurance from Sainsburys. If you look at the Statement of Fact on page 4 you will see a section labelled Are there any fees for your services? where it states that there is a £30 set up fee that is refunded if you cancel within 14 days of inception, but is otherwise included in the charges (along with the £25 cancellation fee that you already know about).