Premium Increase During Policy

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eddablin
eddablin Posts: 8 Forumite
in Insurance & life assurance
Hi,

I got burgled in February and settlement has only just occurred due to a very protracted valuation period. I have now received a letter from my home insurance provider saying that I need to pay a whopping premium increase.

At this point I would like to cancel as this premium increase is extremely noncompetitive. However, they have told me that I need to pay the whopping premium increase regardless. This does not sound fair. They could pluck any number out of the sky without me accepting. How can I be liable for this? I have paid my excesses.

Ed
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  • rs65
    rs65 Posts: 5,682 Forumite
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    eddablin wrote: »
    I have now received a letter from my home insurance provider saying that I need to pay a whopping premium increase.
    What reason did they give?
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
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    Some discrepency in the data you provided in the original quote?
    Under insured?

    Or have you renewed since Feb?
    Censorship Reigns Supreme in Troll City...

  • eddablin
    eddablin Posts: 8 Forumite
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    They say its because I made a claim (so I am a different risk profile now). I shouldn't have any discrepancy and they haven't made me aware of any.

    They smashed through my rear window with a crow bar as well - so no fault of my own (if that makes any difference. We didn't have an alarm at the time.)

    Yes I renewed March 21st after being burgled and reporting straight away on Feb 13th.

    They have pointed to the following terms:

    Adjustment term: i.imgur.com/ss1LDw8.png
    Can't cancel term: i.imgur.com/oQjCCyV.png
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
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    Renewed with the same company, did the renewal mention a discount for not claiming? Did it mention the claim?

    Renewed with the old quote which may have been created before your claim hit the computer system?

    Was it your fault or theirs?
    Censorship Reigns Supreme in Troll City...

  • eddablin
    eddablin Posts: 8 Forumite
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    Yes renewed with the same company (Tesco Bank underwritten by RSA).

    The renewal didn't mention the claim and included my 6 years no claims discount. You may be right about the systems but this was over 5 weeks after. I am sure I rang them about this as I wouldn't want my insurance to be void. Having just spoken to them on the phone they said that this was right as no claims would only drop after settlement.

    I don't think anyone is at fault here?

    I have just raised a complaint. In a nutshell - I don't think a whopping premium increase (by my calcs almost double what I can get elsewhere pro rata even given claim) should be enforceable without prior consideration - I should at least be able to pay the cancellation fees. I have been told that the complaint isn't going to make a difference but at least it will allow me to speak to the omsbudsman.
  • maddogb
    maddogb Posts: 473 Forumite
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    you are being scammed as is so typical from inurers these days,
    read the T&Cs the right to cancel is per policy, in real world terms you have taken out a new policy with the renewal
    as you have not claimed on "this" policy it's unlikely a court would enforce that term and consumer laws is quite specific on terms that give unilateral power, it ain't on.
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
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    Above is so wrong... Took out a policy where a claim was not disclosed. So the facts on the renewal would have been incorrect.

    Renewal may have been done before the system registered the claim.

    The insurer should have known but the renewal would have also said please check these facts.

    A bit of both but worth complaining.
    Censorship Reigns Supreme in Troll City...

  • rs65
    rs65 Posts: 5,682 Forumite
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    eddablin wrote: »
    Yes I renewed March 21st after being burgled and reporting straight away on Feb 13th.

    They have pointed to the following terms:

    Adjustment term: i.imgur.com/ss1LDw8.png
    Can't cancel term: i.imgur.com/oQjCCyV.png

    You haven't claimed on the current policy. You are able to cancel this policy year.
  • eddablin
    eddablin Posts: 8 Forumite
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    OK this is very interesting and thank you for pointing out. I will try this in my argument.

    I am a bit worried following forgotmyname's point on the facts on the schedule not being right. However, that is the new policy that I'm not claiming on. Shall be ringing tomorrow!
  • rs65
    rs65 Posts: 5,682 Forumite
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    eddablin wrote: »
    I am a bit worried following forgotmyname's point on the facts on the schedule not being right. However, that is the new policy that I'm not claiming on. Shall be ringing tomorrow!
    The facts were wrong but they can't say you withheld info, assuming you claimed in February. They would entitled to change the premium but can't stop you cancelling. Make sure you can get alternative cover first.
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