Cancelling home insurance

simonj12

I've recently found an excellent quote on a comparison site but I'm unsure about the terms with my current insurer, Legal and General. I don't fully understand the legal language in the terms and conditions (herein, therein, this party, that party, etc) and it all seems ambiguous to me. To cut a long story short I've had drainage problems which I've ended up having to repair myself. I am now into my second year with them and they have just put their monthly charge up to £35. I don't want to just cancel my direct debit in case it causes any adversity on my credit score or causes problems getting insurance in future.

raskazz

Seems fairly clear if you can find the right section of the policy booklet:

"3. Cancellation
We may cancel this policy by sending seven days’ notice in writing to the policyholder at their last address known to us and refunding any premium already paid for theunexpired period of cover, subject to your rights in respect of any prior accident, loss or damage.

The policyholder may cancel this policy by giving us notice. Provided that you have not made a claim during the current period of insurance, we will refund any premium already paid for the unexpired period of cover."

clear_blu

raskazz wrote: »

The policyholder may cancel this policy by giving us notice. Provided that you have not made a claim during the current period of insurance, we will refund any premium already paid for the unexpired period of cover."

Dont forget that if you are part way through the year the refund is unlikely to be pro-rata you will proberbly be charged a fee for cancellation. Its also worth noting that if you have building insurance that your morgage company will proberbly make a charge for you changing the policy.

raskazz

clear_blu wrote: »

Dont forget that if you are part way through the year the refund is unlikely to be pro-rata you will proberbly be charged a fee for cancellation. Its also worth noting that if you have building insurance that your morgage company will proberbly make a charge for you changing the policy.

Erm, no, the cancellation terms quoted are from Legal and General's online policy booklet. They cannot charge a fee for cancellation as it is not stated in the terms that a fee is payable. In addition, the terms make it clear that a cancellation IS pro-rata.

The only way in which a fee might be payable is if the policy is with L&G through an intermediary.

clear_blu

raskazz wrote: »

Erm, no, the cancellation terms quoted are from Legal and General's online policy booklet. They cannot charge a fee for cancellation as it is not stated in the terms that a fee is payable. In addition, the terms make it clear that a cancellation IS pro-rata.

The only way in which a fee might be payable is if the policy is with L&G through an intermediary.

The OP does not state whether they bought the original policy online or through an intermediary only that their current policy is with L & G.It is quite common to be charged a cancellation fee for instance the Prudential policy states 'You may cancel the policy by giving Us written notice and We will refund the premium for the unexpired period of insurance after having deducted our cancellation charge.....etc.'I was after all only cautioning the OP that they MAY be charged.

Steve1981

clear_blu wrote: »

The OP does not state whether they bought the original policy online or through an intermediary only that their current policy is with L & G.It is quite common to be charged a cancellation fee for instance the Prudential policy states 'You may cancel the policy by giving Us written notice and We will refund the premium for the unexpired period of insurance after having deducted our cancellation charge.....etc.'I was after all only cautioning the OP that they MAY be charged.

the example you have given does state a charge may apply - with original did not

also most insurers will pay a fee towards a cancellation charge from the provider of cover if it is still with the mortgage providing company (you have to ask, but usually its up to £25 me thinks)