Insurance cancellation question

[mr elmo]

In short I forgot to make a transfer over to my main account before the 1'st of Dec when my monthly bills go out, and as a result a few direct debits didnt get paid. I have home contents insurance (renting so no need for buildings) with Birmingham Midshires. Got the letter through the post about missed direct debit and they would attempt in the future, by that point I had sufficent funds in the account for everything.

 

Come the end of January, I went to change teh direct debit to a different account, so I wrote to them with new details, cancellated original direct debit with the bank, few days later I got a letter advising my my insurance had been canceled "We are writing to confirm that your Birmingham Midshires Home Insurance Policy has been cancelled with effect from XX november 2009" I rang them up and they advised this was down to the missed payment in December - I didnt say to much as its better to keep things in writing.

 

Looking at my bank statement and direct debit info page on my online banking they didnt attempt to take a payment on or around the 1'st of Jan, nore any other earlier attempts apart from the missed one.

 

According to their t+c if they cancel I should be due a refund of preiums paid up to that point, I haven't relieved anything, and in the t+c it states that I can not cancel it after 14 days so confused on the current status of it

 

So is this a canceled insurance policy that I need to declare with other insurance companies? what steps should I take to clarify things/complain about the 1st jan payment not being taken

[unclebulgaria67]

No this is not a cancellation you have to disclose to other Insurers. You only need disclose in a situation where Insurers have refused to cover because of non disclosure.

 

So just arrange your cover elsewhere. Use a comparison site and you should be able to find a Contents Insurance to suit your requirements and get instant cover. My advice is to always use a company you have heard of and before you buy check for any adverse comments online. There are a lot of new companies on the market that are internet based and they are a total let down if you ever needed to claim. e.g. ehomeinsurance.

 

Birmingham midshires would just have cancelled from the date the policy has been paid until.

[mr elmo]

Really? - I was half expecting a mini battle to get things sorted - I am a bit baffled still as it says in the terms and conditions that it can only be cancelled at the end of the policy, if I was to commit fraud, or if they wanted to due to increased risk.

 

So the sort of cancellations they mean are say if I didnt tell them I lived next to a river that flooded regularly, they then found out and cancelled?

[unclebulgaria67]

Yes really. I only say this as I have been in the industry for over 20 years and had responsibility for a top 6 Insurer, deciding on these issues.

 

You only disclose if Insurers have cancelled because they do not want to Insure you. This is when they void the policy for non disclosure or cancel the policy giving 7 days notice for other reasons. The example you quote about living next to a river that flooded could be one such situation. If the Insurers asked the question and you did not disclose, the Insurers would cancel the policy or make void from inception.

 

If a policy was cancelled due to non payment or you cancelled mid-term for your own reasons, then why would you have to disclose for the rest of your life.

[mr elmo]

Thank you Certainly helped to clear things up

 

I was'nt sure if non payment was another thing insurance companies would use to "not pay out" - while I have never been in the position to make a claim so its all new to me.

 

As for the new "internet companies" offering insurance, from browsing comparison sites there are loads I have never heard off, think I will be sticking to one of the big names in the future. Thanks once again