Privilege Home Insurance Cancellation

[Andyrory]

i've cancelled my home insurance with privilege because we have moved house and had to have insurance that was approved by our new mortgage lender. Privilege are wanting to charge us £39.60 to cancel the policy. Should i of been charged a cancellation fee?

[Baldric]

What's it say in the small print

[Andyrory]

It does say that i will be charged an admin fee but i feel this is unfair as the only reason i am cancelling is out of my control.

[factor-fiction]

I think Privilege will say it's not their fault either. Unless the terms are specific about when charges will be waived I think they'll hold you to it. It's worth asking though

[New Judge]

You should also consider the legality of the terms imposed by your new mortgage provider. I'm not entirely sure but I believe they are not entitled to impose a condition which stipulates which insurers you must use. They may try to impose it but may back down when you refuse their kind (and probably over-expensive) offer.

[gingejbee]

I, too, doubt that your new mortgage lender can insist on which insurance company you use. This sounds like a case of "mis-selling".

[factor-fiction]

I didn't read it that the lender required the insurance to be with a particular company- maybe it was more a particular aspect of cover that was needed- e.g. maybe one that included subsidence cover. But I'd still query it with our lender and suggest they compensate you