Homeowners stung by hidden home insurance costs
As online insurer, Your Cover, launches into the household market, new research shows that leading insurers continue to charge consumers for making minor adjustments to their policies.
Last year, a survey by Which? found that 33% of home insurers now charge for policy alterations such as changing an address or marital status. And now, using information provided by the independent financial research company, Defaqto, Your Cover insurance reports that leading household insurance brands are charging as much as £30 to make even the simplist of changes to a policy.
The research also revealed that some insurers charge:
Up to £30 to send out duplicate insurance documents
Up to £35 to amend policy details
Up to £55 or one month’s premium to cancel a policy
And one leading insurance brand even charges £37.50 when you renew your policy!
Extensive customer research carried out by Your Cover insurance before its home product launched revealed that consumers expect to be able to make changes to their policy without incurring administration charges imposed by their insurance provider. Your Cover insurance listened and does not charge for changes made during the term of the policy.
Reflecting further feedback, Your Cover’s new home insurance product enables customers to purchase a basic level of comprehensive cover and build a bespoke policy by adding up to 11 optional insurance extras including identity fraud protection, home business cover, sports equipment insurance and 24-hour home emergency assistance.
Andy James, Head of Direct Marketing at Allianz, said:
“In these difficult financial times, customers don’t just want competitive premiums, they also don’t want to pay for making simple changes to their policies. We believe in treating our customers fairly and have made every effort to make any administrative charges proportionate and transparent."
He adds: “The incomes of ’s household’s are feeling the pinch now more than ever. Our new home insurance cover is aimed at giving consumers greater flexibility and choice to help keep their costs down by only having the level of cover that they need.”
ENDS