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Why do I have to pay a cancellation fee?
The cancellation fee is charged to contain the expense of customers taking out a policy with us or allowing a policy to renew, and then cancelling.
You will find that most online providers of home insurance charge a cancellation administration fee because we all incur costs in either converting quotes into policies or renewing policies with the documentation, paperwork and accounting process that it incurs, and then further costs in having to reverse the accounting process.
This works to the benefit of customers who do not cancel in that we are able to avoid passing on such costs to them. We have a duty to treat all our customers fairly. We felt it was not fair to our other customers whilst they were having to cover these costs.Read more about the fees we charge