Home Insurance Cancelled by Provider - Finance Help

[Martin4356111]

Evening all,

I recently got back from working abroad for 4 months to find out that my house insurance automatically renewed whilst away, no dramas there.

However, due to not having sufficient funds in the account nominated for payments to be taken from, I missed a payment and long story short, they have cancelled my policy.

They did send two letters, one requesting payment of the arrears and the other a notice of cancellation. I only received these when I got back and by that point, it was too late.

I hold my hands up and accept that this is my own fault for not having checked my renewal date before I left, no one to blame but myself.

However, I've now got two issues.

One is that I now need to declare that I have had insurance cancelled from now to the end of time. Not a major drama (at the moment at least) as I have insured with another 'big name' insurer for the same price. Having told them about the cancellation and the reasons, they weren't that bothered and said a cancellation for missed payment isn't taken in to consideration.

Second and more concerning is the potential for a default flag to go on my credit file.

I have cleared the arrears with the insurance company (missed month and cancellation fee) to make good with them.

My question is...

amongst my letters was a credit agreement that they needed signing from the finance company for the monthly installments sent at the renewal point which I obviously didn't sign as I didn't get it. I also didn't sign any agreement online.

Does this give me any bartering power with the finance company to get any potential default removed?

Like I said, hands up this is my doing for having bad admin so not after a lecture

Anyone with any advice on how to help my situation.

[darreni]

I wouldn’t be too concerned, it’s more a failure to renew than a cancellation. Insurers are really only concerned when plans have been cancelled due to fraud/dishonesty or failure to disclose material facts that would affect the decision to insure or premium charged for accepting the risk.

[Sheepshanks]

If you’re away for months, would the insurance have covered the house anyway?

[oakdale]

Sheepshanks said:

If you’re away for months, would the insurance have covered the house anyway?

They usually still cover you if you tell them but they'll increase the the cost to cover the extra risk.

[Martin4356111]

Sheepshanks said:

If you’re away for months, would the insurance have covered the house anyway?

I had my sister go and stay once per month just to make sure. The terms stated that it couldn't be unoccupied for more than 60 days continuous.

Whether that would have sufficed had there been any problems I don't know but nothing happened so it's all good.

[Sarnie]

It's insurance, not a credit agreement, it doesn't show on your credit file.

[Martin4356111]

Sarnie said:

It's insurance, not a credit agreement, it doesn't show on your credit file.

The insurance isn't but the loan provided by the finance company to pay in monthly installments will be I think.

[NickCQ]

Martin4356111 said:

my house insurance automatically renewed whilst away
a credit agreement that they needed signing from the finance company for the monthly installments sent at the renewal point

I think you need to read the small print in both the original (initial term) house insurance and finance agreement documents.
It may be the case that upon auto-renewal the finance agreement falls away and the insurer provides a monthly policy (no finance needed). Alternatively, it may be the case that the finance also auto-renews.

In either case I think it is unlikely that fact you didn't sign and return anything is relevant, as there will have been provisions in the original contracts to deal with a no-response auto-renewal.

[Sarnie]

Martin4356111 said:

The insurance isn't but the loan provided by the finance company to pay in monthly installments will be I think.

I've never seen a house insurance agreement on a clients credit file.........