Home Insurance FAQs
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What Fees Do HomeProtect Charge?
Unlike other insurers, we don’t have an excessive fees structure, we only apply fees where we need to cover a cost.
- Duplicate document fee £0
- Amendment, or cancellation of the policy within 14 days “cooling off period” from agreeing cover (either when buying a new policy or renewing) £0
- Amendment of the policy outside of the cooling off period £25
- Arrangement & Administration fee to arrange or renew a new policy £50
- Cancelling the policy outside of the cooling off period £50
Fees charged by Premium Credit
- Change of Direct Debit instruction £5
- Non-return of loan agreement £10
- Failed collection fee £20
Why am I charged an Arrangement & Administration fee?
We believe in being clear and transparent with our customers regarding the breakdown of the total amount of their policy. Instead of grouping all costs into one total amount, we itemise each cost component. The Arrangement & Administration fee represents the costs incurred to arrange or renew your policy under your separate contract with HomeProtect.
Q. Why are you charging this fee? The fee represents costs we incur to arrange or renew a policy. It doesn’t mean you pay more for your cover than you should. We simply believe we should be transparent about our costs which is why this is shown as part of your price breakdown.
Q. What costs are involved in arranging a new policy? Like other insurance providers, we have to pay fees to price comparison sites or search engines which customers use to search for quotes, and we incur costs for running a contact centre to manage customer queries and issuing policies.
Q. What costs are involved in renewing a policy? Like other insurance providers, we incur costs for running a contact centre to manage customer queries, to issue policies, to take payments as well as the costs of printing and distributing renewal packs.
Q. Isn’t the fee just part of the premium then? No. You enter into two contracts when you buy a policy. One with us, one with the insurer who manages your claims. The fee covers our costs, the remaining premium covers the cost of underwriting claims which the insurer bears.
Q. Is the fee refundable? Yes, but only in the cooling off period as we can recoup some of the costs we incur – for example the costs we would have to pay to price comparison sites. If you cancel after this point, you will receive a pro rata refund of premium but we can’t refund the fee as we incur costs we cannot recoup.
What is IPT?
Insurance Premium Tax (IPT), is a levy charged by the UK Government on most types of insurance policies.
The standard rate of IPT is currently 12% (increased from 10% on 1 June 2017).