Our Home Insurance Company has written to say we owe them the annual balance to be paid in full.?
We have been paying on direct debit monthly for our Home Insurance for years. We have been with the same company for about 10 years and made 2 claims totally about £500. We cancelled and went to another company mid-way through our year and they sent us a bill saying we own the balance for this year. Do we actually owe them and must we pay?
Some insurance companies have a clause in their policy that requires that a policy cancelled mid term must be paid for in full. I would make sure that the agent gives you an explanation as to why you owe that premium as well as tell you where in the policy it states that. Once you have their side of it, pull out your policy and view it for yourself. In fact, you may want to look at the policy when you are speaking with your agent.
If the premium is "Fully Earned" then you DO owe the whole premium and you can't get any premium back for any reason. Although, the company may just be trying to get the money out of you, or it may be some sort of accounting error, so bring it up to your agent and let them explain it to you.
I hope this helps!
check youre contract you had with them you might find there is an early get out clouse that may force you to pay the end of year balence plus a cancel fee for terminating the contract before the alloted time good luck if however the reason for you leaving was them braking the contract failing to do something again cheeck youre contract you never no then thay cant make you pay the money since thay where in breach of the terms of the contract but be sure you can prove it first
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It will be in the old contract I fear.
But contact them and get them to explain how they arrive at their decision. Be prepared to go to arbitration if you feel they have acted unfairly.
References :
Some insurance companies have a clause in their policy that requires that a policy cancelled mid term must be paid for in full. I would make sure that the agent gives you an explanation as to why you owe that premium as well as tell you where in the policy it states that. Once you have their side of it, pull out your policy and view it for yourself. In fact, you may want to look at the policy when you are speaking with your agent.
If the premium is "Fully Earned" then you DO owe the whole premium and you can't get any premium back for any reason. Although, the company may just be trying to get the money out of you, or it may be some sort of accounting error, so bring it up to your agent and let them explain it to you.
I hope this helps!
References :
10+ years in insurance
Look at your policy. Beside the premium if it says "100% Minimum & Retained", "Fully Earned" or something similar, then yes you owe them the full year's premium. If you do not see something like this then contact your broker/agent and have them explain the reason.
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Normally that only happens when the policy is 100% minimum earned like what everyone else is saying.
The problem I see is when a policy is 100% earned/retained then installments are not allowed! The company will want in full payment to insure they have collected the entire premium.
Reason being is you could do exactly what they feared…you cancel the policy and they would be short money! They could potentially send you to collections.
I would ask your agent for evidence in writing that they informed you it was 100% earned. If they can't prove that then its on THEM in my opinion. I have sold policies like that before but not only explained verbally I put it in writing that no monies would be returned if the policy cancelled and had them sign off that they understood what that meant. PERIOD
References :
Insurance broker 5+ years