House Insurance messed up DD now want year's payment in 3 instalments

the_wrong_boy

Hi all,

This is my first post. I'm hoping somebody can give me some advice.

In June I had an email from my house insurance broker, Advance Insurance, saying I needed to call as my policy didn't automatically renew. I called, discussed a new deal with the current insurance company, and gave bank details for the DD and deposit. I didn't check the money was being taken, because we have so many DDs, and I just assume they all go.

I realised in September that I hadn't been sent documents and called them to ask for these. They never arrived, but they were slow to arrive the previous year, so thought nothing more of it.

I assumed all was tickety-boo until last week when I had a call saying there had been an issue setting up the DD, and instead of paying 10 instalments of 60-odd quid, I'd need to pay three instalments of £200.

Last week when they called I had to push and push for these, and said I wouldn't pay until I had proof the policy existed. I then called the underwriters that were named on my original quotation email, and they said no policy existed for my address. I chased with brokers who eventually sent me last year's documents. The guy I've been dealing with said the mix-up was that it was an automatic renewal which caused some confusion. I know to be untrue given the email sent to ask me to call to discuss a new policy.

I have now also realised that I didn't sign any documentation at the time of taking out the insurance - no finance agreement or policy agreement.

I am happy to cough up the money, but ideally in smaller instalments over the remaining 7 months of the contract, but their finance providers will only do 3 months. I have suggested starting the whole thing again from now, but they then say I'll have to pay a cancellation fee, the money for insurance thus far provided, and a commission refund fee.

Questions: 
1. Am I within my rights to walk away given no finance agreement or policy documents were sent?
2. We verbally agreed 10 instalments. They messed up on their end. Is this grounds for not having to cough up in three instalments? The interest fees will change as a result of this too.

A bit long this, but I'd appreciate any help!

Thanks,
Aron

Aylesbury_Duck

1.  Are you actually insured?  It's not clear that you are.  If you're not, then yes you can walk away because there is no policy in effect.
2. Tricky, and will depend upon how concrete that verbal agreement is.  All you can do is ask, but without evidence, I can't see you can enforce it.

jlfrs01

I agree with Aylesbury_Duck on both points and in your shoes I would A: cancel my DD and B: organise insurance with another provider pronto using the comparison tool on the MSE website. The mob you're dealing with sound inept and unreasonable.

DullGreyGuy

presumably you've sustained no losses and so there is certainly a question of why they don't set up a new policy starting today with the normal 12 month duration and instalments. The only "problem" is that there is typically a question of how many years have you continuously held insurance and you now have a gap but that's something they should be able to deal with as a gesture of goodwill for their messing about. 

breaking_free

So they want you to pay for cover they didn't actually organise? They're having a giraffe!
Wonder what their attitude would have been if you'd made a claim - "Sorry guv. Looks like we failed to set up your cover so you get nowt. Very, very soz..."

the_wrong_boy

Just read through the cancellation info on the policy document they created and sent on Wednesday of this week. It states I can cancel within 14 days of date of originally entering into contract, or the date that the policy documents are received, whichever is the latest. Just waiting for a call back from a manager to discuss. Got a feeling I might be waiting 12 days for that one...