LAMP is insolvent (underwriter for now4cover)

1356

Comments

  • rolysatch
    rolysatch Posts: 55 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    [FONT=&quot]I’m paying for my insurance monthly by direct debit also. I think it's risky to just cancel the direct debit as you'll likely get into legal issues with the loan company. however on the email when I signed up for my insurance it says:[/FONT]
    [FONT=&quot] [/FONT]
    [FONT=&quot]"You may cancel your cover at any time if you decide it’s not suitable. We would hate to lose you but if you must, log into your account, click "Insured Properties and Items" and select that option. If a payment is due within five working days this will still be collected but other than that no further payments will be due and your direct debit will cease."[/FONT]
    [FONT=&quot] [/FONT]
    [FONT=&quot]So I’m assuming under normal circumstances you just cancel your policy and the direct debits cancel automatically with no cancellation charge. But unfortunately as I’m guessing most have you have seen they are preventing you from cancelling the policy.[/FONT][FONT=&quot][/FONT]
    [FONT=&quot] [/FONT]
    [FONT=&quot]I'm no expert on these things but I’m going to get insurance elsewhere and hopefully be able to cancel after the 31st.[/FONT][FONT=&quot][/FONT]
    [FONT=&quot] [/FONT]
    [FONT=&quot]The only other potential problem I could see is if a claim needed to be made whilst covered by both insurance companies at the same time - even though now4cover can't pay on claims they're saying we're still covered lol - so that could become a real headache.[/FONT][FONT=&quot][/FONT]
  • 1275
    1275 Posts: 4 Newbie
    It does say we are still covered. My problem is I had a subsidence claim a few years ago with a different underwriter and sorting alternative insurance is less than straight forward no big companies will quote so I am really stuck until Tuesday now either way.
    I think cancelling after the 31st is the best idea unless now4cover can provide an alternative underwriter which to be honest as a broker they should be looking to sort at least straight forward alternatives for most without passing it over to us to do.
    I will get some quotes on Tuesday now as no specialist underwriters are open till then and I have to submit structural reports etc to prove that my issues were caused by a broken drain under the house and its not falling down.
    Like everything else they waited till Friday afternoon to deliver bad news. Fingers crossed nothing happens in the next few days as thats going to be a nightmare to sort out.
  • rolysatch
    rolysatch Posts: 55 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    yes i feel your pain, good luck i hope we get it sorted asap.
  • Floydie
    Floydie Posts: 5 Forumite
    First Post First Anniversary
    I have home & contents insurance with now4cover and received the same email.
    Could someone clarify if it is allowed/legal to start another policy?

    Even if the issue is resolved on May 28 and another insurance company takes over, what is the likelihood that a claim would be paid (in full)?

    We have the added worry that we are due to commence building work on the house and some insurers won't take up a new policy when they know there is building work imminent.
  • prefdavid
    prefdavid Posts: 20 Forumite
    First Anniversary Combo Breaker
    I'm no expert but their message is full of them giving us facts but not giving any advice. They say that claims are unlikely to be met and I for one, am not prepared to take the risk that something happens, especially something major, to find we have no way of obtaining payment to recompense us for that loss.
  • Kporch
    Kporch Posts: 1 Newbie
    We do have a claim in. People came to survey damage last weds and it would appear went into liquidation on the thursday. Am fuming as my cover also covers my business so that hasn’t been covered for over a week now either. Goodness knows if going to get put money now for the claim.
  • anonmum
    anonmum Posts: 67 Forumite
    First Anniversary First Post Combo Breaker
    hi all,

    Firstly sorry to hear about all of you that have paid in full for your policies or just put in claims and now had the news dropped on you - really hope you can get your money back somehow!

    Since I can't cancel the policy through their website directly now, I have sent both a message through the website and an email stating I wish to cancel the policy before I cancelled my direct debit - again I cannot advise on the rights or wrongs of doing this - am just damn sure am not paying anymore for a service I am not getting! (Apart from the fact I can't afford to pay for two lots of insurance anyway!)

    Best wishes all,

    anonmum x
  • drdes11
    drdes11 Posts: 6 Forumite
    First Anniversary First Post Combo Breaker
    Interestingly when you go on the fscs website for General insurance for Lamp it states that they are not accepting applications for the specified firm which is odd.

    Not sure what that means

    Real shame that Now4cover (who my policy was with) are not stepping up to give better advice
  • oz0707
    oz0707 Posts: 881 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    I can't believe in this day and age of FSCS and consumer rights protected deposits etc an insurer can just go pop and you'd not be covered. Surely the Gov or FSCS will step in to honour claims. Imagine if someones house burnt down. Im holding tight till after the 31st I think
  • Zorillo
    Zorillo Posts: 774 Forumite
    First Anniversary Name Dropper First Post
    More should be done to make people aware of the risks when insuring with cheap 'offshore' insurance companies, especially ones based in Gibraltar.
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