Is that legal?

[rivarama]

Hi folks- I am after a bit of advice here.

I got back from holiday 2 weeks ago to find that the ceiling of my office downstairs had come down because of a leak and completely ruined everything in that room. Turns out the suction cups holding a shower shelf in the bathroom right above the office gave out in the heat and fell off on the shower taps, turning them on as a result.
So some water dripped for about 3 weeks and destroyed the shower silicon seals and penetrated in the wall and through the ceiling etc... Quite a freak accident really.

Cutting a long story short, the insurance company doesn’t want to cover the damage as they claim it’s a case of wear and tear of the seals, and that this issue had been going on for months supposedly (makes no sense really). Obviously I completely disagree, but I don’t have the energy to fight them for 2 months with the stress that comes w it, and I need that office to be fixed quick as I have been working from home a lot lately. So I will poney up the cost of repair myself.

My question is about the premium: I have received a letter in the mail today, telling me that I need to pay for a premium increase - which I am shocked by as they haven’t covered anything - so no cost to them.
Am I right to assume that premiums shouldn’t change for the period of the contract I signed already (I paid the premium upfront for 12months), and that any increase would only be passed on at renewal time, which is in 8months?

Thanks for your advice

 

[Zep]

I think it depends on the wording of the contract. But in general I wouldn’t expect premiums to increase in the agreed period.

 

[BennyD]

As far as I am aware, you are correct. I’ve had something similar in the past and told them to ram it. If they kick off, tell them you are cancelling the policy and ask them to refund what they owe you. If you add that you will be telling family and friends that insure with them what has happened they usually back off. They are a bunch of chancers that will do anything to fck you over, so that’s why I try and fck them over first.

 

[sionie1]

Apparently if you attempt a claim it’s recorded the same as if you claim. We had it a few years ago , a similar verdict about a roof from a surveyor who must’ve been on commission not to pay out, had the premium attempt at increase, and nearly had insurance cancelled because ‘we lied’ about not claiming. We duly kicked off and got the marker removed but it took some fighting. In my case I involved RICS regarding the surveyors comments and report which went in my favour.

 

[cheshiremaserati]

Call the Citizens Advice Bureau and get an independent view....

 

[midlifecrisis]

There's always the Insurance ombudsmen too but the CAB is a good shout. And read the small print.

 

[Oneball]

No idea about the legalities but tell them to shove it and go elsewhere.

 

[MarkMas]

Very normal for an insurer to use the excuse of a 'potential claim notification' to re-underwrite you as being a higher risk, and to quote a higher premium - even when the incident they are basing this on did not result in an actual claim and was not (according to them) a claimable item. Quite unusual to try to do this during the insured period, however, especially if you paid in advance. But that may be expressly permitted in their terms and conditions.

You need to bear in mind that (almost) all insurance companies are run by liars and thieves, who will do anything they can to avoid paying claims and to bump up your premiums. But they are also lazy cowards who will often quickly back down when faced with serious opposition.

I suggest (assuming this is personal/home insurance, not company-paid, which might be different) that you consider:

1. Suing in the small claims court for the original claim
2. Citing the "unfair contract terms" provisions in the Consumer Rights Act 2015, to say that even if their terms allow them to increase premiums during the term, this would undoubtedly be considered unfair under the act
3. Threaten them with the insurance ombudsman

4.



https://www.which.co.uk/consumer-ri...s-an-unfair-term-in-my-contract-what-can-i-do
https://www.moneyadviceservice.org.uk/en/articles/making-a-complaint-about-an-insurance-company
https://www.financial-ombudsman.org.uk/

 

[tokyomb]

I work with insurers - but cannot advise you on your specific circumstances.

However, in a retail insurance contract I think it would be possible for there to be a term allowing them to reprice in the circumstances of information coming to light (e.g. a potential claim) that leads them to believe the risk was not appropriately priced from the outset (e.g. due to non-disclosure). Only way to be sure will be to read the small print of your policy documentation.

In the absence of them asserting this is about non-disclosure, if there isn't a clause that explicitly allows them to reprice mid-term (which would be relatively unusual - sufficiently so, I would have expected it to be brought to your attention at point of sale), I think you would have a reasonably strong case taking them to the Ombudsman. Even the threat of a complaint ahead of taking the case there may result in them backing off. Formal complaints and Ombudsman referrals tend to be KPIs that are quite closely monitored by insurers compliance functions, and get board-level attention.

Agree with what @MarkMas says both about potential claims leading to re-underwriting on renewal and the likely differences between retail / commercial contracts.

 

[Silvercat]

TBH the insurance industry has got to be the next PPI. There needs to be an independent 'root and branch' review of the insurance practises in the UK and into the extortionate fees which they charge, often with many exceptions and 'get out' clauses in the small print, making the policies virtually worthless. I often wonder why we all even bother at all and just take the risk.
If your insurance company is trying to increase premiums mid term, then my advice would be to tell em to 'foxtrot oscar' and walk. The more people vote with their feet then frankly the better.

 

[BennyD]

We have insurance because in many cases it’s almost compulsory to have it, and in the case of cars it’s a legal requirement. This has allowed the insurance industry to bend you over for decades with no need for lubricant. These days, every chance I get to flip the f*ckers over and do them dry from behind I take with both hands. Karma can be a b!tch.

 

[Wattie]

I think it depends on the wording of the contract. But in general I wouldn’t expect premiums to increase in the agreed period.

This.
Personally and given your experience i would be taking the insurance elsewhere as it seems they've failed you. Insurance is supposed to provide safeguard against the unknown, thats what you were paying for. At first sight of a claim they refuse to payout.
That's not insurance,
Thats cr4p.
And now they want you to pay more.......so they can refuse your next claim?
Ditch them.

 

[rivarama]

Brilliant advice guys, thank you.
i am going to push back on the premium increase and will walk away then as I can’t trust them anymore.
As for trying to overturn their decision on the claim, I just don’t have it in me to waste countless hours on the phone, as under covid all services are disrupted and no one in a position of power is available. I constantly seem to hear -
“Please contact our complaint center, and they will contact you within 5 business days“ which they never do by phone but through a no reply email.
This will take months.

 

[MarkMas]

....As for trying to overturn their decision on the claim, I just don’t have it in me to waste countless hours on the phone....

True. I know how you feel, and have TBH, given up on many similar situations.

BUT a recorded delivery letter saying "I understand that you have rejected my claim and we have reached deadlock on this situation. Unless I hear from you with a positive proposal within 7 days I will be taking the matter to the Small Claims Court for resolution of my claim, compensation for my time taken and Court fees." might produce a result. If they call your bluff, then you can give up at that point, or go online and start the process.

https://www.citizensadvice.org.uk/l...laims/deciding-whether-to-make-a-small-claim/
https://www.gov.uk/make-court-claim-for-money

 

[Guy]

General point about insurance from my personal experience; you generally get what you pay for as insurance policies are products and certainly not all the same. Most people are tuned to go for the cheapest quote, believing they will never need it. I want to know that if there is a problem they will respond quickly and pay up without the 'ducking and diving' we read here and elsewhere. Many years ago I used CIS (Coop) for that reason but not sure if they are the same now. I also had great service fron Zurich Private Clients and today I use NFU from a local and excellent broker. I might have been able to save £100 here and there on house, cars, horses, contents etc but I prefer to sleep well (FYI I think the Strad costs me about £400pa, which in my opinion is not bad for £60k group 50 car).

 

[Wattie]

Brilliant advice guys, thank you.
i am going to push back on the premium increase and will walk away then as I can’t trust them anymore.
As for trying to overturn their decision on the claim, I just don’t have it in me to waste countless hours on the phone, as under covid all services are disrupted and no one in a position of power is available. I constantly seem to hear -
“Please contact our complaint center, and they will contact you within 5 business days“ which they never do by phone but through a no reply email.
This will take months.

We’ll done Sir, walk away with your wallet intact.
Better, more dependant cover exists elsewhere.

 

[Wattie]

Pi

True. I know how you feel, and have TBH, given up on many similar situations.

BUT a recorded delivery letter saying "I understand that you have rejected my claim and we have reached deadlock on this situation. Unless I hear from you with a positive proposal within 7 days I will be taking the matter to the Small Claims Court for resolution of my claim, compensation for my time taken and Court fees." might produce a result. If they call your bluff, then you can give up at that point, or go online and start the process.

https://www.citizensadvice.org.uk/l...laims/deciding-whether-to-make-a-small-claim/
https://www.gov.uk/make-court-claim-for-money

He doesn’t want the hassle, Mm.
And if he doesn’t pay the increase, presumably cover lapses altogether.

I’ve always thought you were a rebel.
This proves it
Power to the people.

 

[Ebenezer]

I've had pretty good experiences lately with the free insurance I get through my bank account insurance

• Refund for holiday cancelled due to Covid with no voucher nor refund although they did half heartedly try to palm the responsibility off on the credit card company.
• Upending a lovely bottle of red all over vintage chinese carpet - happy with valuation and payout (for the rug!). Didn't claim for the wine

Eb

 

[mjheathcote]

Talking to some friends only last night and their shower drain has failed, all the shower water flooding the ceiling cavity, requiring new ceilings.
All on insurance.

 

[MarkMas]

Pi

He doesn’t want the hassle, Mm.
And if he doesn’t pay the increase, presumably cover lapses altogether.

I’ve always thought you were a rebel.
This proves it
Power to the people.View attachment 74456

I'm an enigma, sometimes fighting to the bitter end (Vodafone), sometimes giving up (Ftech).