13 million households 'routinely overcharged' by home insurance firms, claim Citizens Advice

13 million households 'routinely overcharged' by home insurance firms, claim Citizens Advice

According to Citizens Advice, home insurance companies are "routinely overcharging" up to 13 million households in the UK for renewing their existing policy, with older people are especially vulnerable to these additional costs.

Its research found that 40% of over 65s have had their home insurance policy for over five years, and could be paying 70% more than a new customer would for the same policy. For someone with the cheapest policy for buildings and contents insurance, this could be an extra £110 a year, on average.

Only half of home insurance customers it surveyed were confident they could identify unfair charges in their premium.

Citizens Advice says this overcharging is a "market-wide practice" and believes almost one third of the entire home insurance market could potentially be paying 70% more than a new customer for the same policy.

Earlier this year, the FCA introduced new rules making it a requirement for companies to explicitly inform customers what their past year’s premium was at renewal.


But Citizens Advice says "many home insurance providers did not fully comply with the regulations", and is asking the FCA to do more.

Gillian Guy, Chief Executive of Citizens Advice, said: “Home insurance companies are taking advantage of people’s loyalty, and it’s older people who are suffering the most.

The Financial Conduct Authority must stop home insurance providers overcharging customers. Vulnerable customers are the hardest hit and must be protected from this unfair practice.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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