Premium increased twice before renewal after phone call!

Homeowner16

Help! We have a leak in our kitchen ceiling. Not sure where it’s coming from. I called our insurance company to advise. It was just before renewal. We had already received an email stating insurance was up for renewal and new premium was going up from £500 to £750. Now after the phone call we have another email to say the premium will now be £1500! Before I even know if we can claim or not! So before we even start fixing the leak it will cost me £2000 (excess is £500)And actually maybe the leak is uninsurable! Help! What do we do? I have 14 days to cancel the renewal but will another company insure us if it’s on our record I asked for advice re a leak? I feel like the insurance company is acting in bad faith and completely ripping us off. We had never made a claim before and I was acting in good faith by asking for information on a possible claim. Please help! 

DullGreyGuy

Its a claim even if they decline cover and escape of water is one of the most premium impacting 

Technically you need to inform them of any "incident" irrespective if you intend to claim however in reality people dont tell their insurers each time they spill a drop of coffee or red wine on a sofa or carpet. If you do however you have to continue advising them for the next 5 years.

Another insurer will insure you, though an ongoing claim will put some off, just you have to declare the claim and that you are 0 years claim free etc. No harm in seeing what other's premiums will be.

dunstonh

We had already received an email stating insurance was up for renewal and new premium was going up from £500 to £750. Now after the phone call we have another email to say the premium will now be £1500! Before I even know if we can claim or not! 

You have already claimed by notifying them.  A notification is a claim in insurance speak

 I have 14 days to cancel the renewal but will another company insure us if it’s on our record I asked for advice re a leak?

They will insure you but you will have to declare the claim and their pricing will be based on that.

I feel like the insurance company is acting in bad faith and completely ripping us off. We had never made a claim before and I was acting in good faith by asking for information on a possible claim. 

They are not ripping you off.   Their pricing models are not that personalised.  You are priced on each of the questions that are asked and the figures supplied.  Some things individually don't have much influence on price but if you start totting up negative things, then the price can increase more substantially.     You now have a claim on your record and that is acting as a multiplier to your other risks.   it is possible that as the claim amount is not yet known, that is creating a greater premium than if it was known. i.e. unknown liability goes in their highest price

You are free to shop around but you must disclose the claim.  The existing insurer remains liable for the claim.  Not the new one.

Homeowner16

Thanks for your detailed reply, much appreciated!