Dear Sirs my property suffered an escape of water episode in 2019. It was due to the pipes having been cemented without protection and corrosion causing leaks in the ground floor - terraced house built in the 1990s by Octagon in SW London. I was reasonably well insured, and my insurers Pen Underwriters covered the damage, and advised me to replace all remaining pipes in order to avoid reoccurrence. I duly did so out of my own pocket. As a result, my premiums went up by nearly 300% over two years. I accepted the first renewal (+100%) as I was still in the middle of the claim, but at the second renewal I discovered no other insurance company would take me on and I had to accept a further 100% YOY increase, which makes it a 300% increase if one takes as base line the year before the leak (I had been a customer since 2009, with premiums around 600%C2£, in 2018 it was 650 and then 1,32 in 2019 and 2589 in 2020.
I have complained to Pen and received this reply:
"On review, we are unable to uphold your complaint. I am satisfied on speaking with our underwriters that the premium charged is fair and reasonable and reflects the risk being insured and takes into account your claims history. It is standard practice that at the end of a policy period, an insurer is entitled to review the risk and to offer a revised or increased renewal dependent on those previously mentioned factors.
You are under no obligation to renew with us, and are able to seek alternative terms if you are unhappy with the terms Pen offered you."
I do not agree with this, as:
(1) how can a +102% and +97% increase be described as fair, for two years running?
(2) as the insurers have had complete control of the risk elimination and have even imposed additional work which I have undertaken to my cost using their contractor, there is no more a situation of increased risk, the house water system has been completely redone to their specifications by contractors of their choice
(3) while it might be reasonable from a commercial point of view that such a practice has been imposed over the years, it is intrinsically unjust - as this risk was not caused by any recklessness nor carelessness - and moreover, it is the SIZE of it that I am questioning
(4) it is adding insult to my damage to say that I can take my business elsewhere as they know, as I know as you know perfectly well that nobody would take me, not even for such a disproportionate premium.
I am asking you if there is any action I could take, first to get better insurance and secondly to get some compensation for what I feel is taking advantage of a position of power.
Thank you.
Best regards Marta Broglio
