Last September I contacted my home insurer, Allianz, to inform them I was having building work done. I was converting my attached garage into a shower room and utility room. I expected to be told that they would not cover any damage caused by this work, but instead they cancelled the whole policy. It proved difficult to find alternative cover since price comparison sites work on the assumption that you have never had insurance cancelled.
Eventually I was able to secure a policy with Direct Line but the premium was around 40% more than I had been paying. This year, when the policy ended, I approached Swintons for a better price. This resulted in Axa and Legal & General both declining to insure me because I have had insurance cancelled in the past. I am now being penalised for nothing more than having building work carried out; no claims were ever paid on the Allianz policy
MG, Inverness
You are in a virtuous minority and are paying heavily for doing the right thing. A survey by uSwitch found that only 17% of homeowners notify their insurers prior to building work. Those who fail to do so risk invalidating their policy because extension work increases the chance of damage and the rebuilding costs of the home. Allianz’s reaction was entirely unreasonable since, if need be, an insurer simply increases the premiums when advised of extensive building work.
Extraordinarily, when I put this to Allianz it instantly decides that you were misled. Very expensively misled. “Building work of the type undertaken by this customer would not normally result in a change to a customer’s premium and their policy would not be cancelled,” says a spokesperson. “We are extremely sorry that he was given incorrect information.”
It has now offered you compensation, removed the cancellation from its records so you do not need to declare it and offered you “support” to find new cover.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
