Can I cancel my home insurance?
In short, yes – you can. If you’ve taken out a home insurance policy, then by law, you have a 14 day ‘cooling off period’ during which you can change your mind. The cooling off period begins from the date your policy starts or when you receive your policy documents – whichever is later.
Any premiums you’ve paid should be refunded to you – but minus a small amount to cover the days that the policy was active for. You may also be charged an admin fee – check your policy terms and conditions for the amount.
But even once your cooling off period ends, you can still cancel your home insurance but any refund will be calculated pro rata (in other words, you’ll only get back a proportion of your premiums based on the length of time the policy ran for). You may also be charged a cancellation fee and further admin fee. Tot up the cost of any cancellation fees because if you’re switching for a better deal the savings you make from switching might be swallowed up by fees and charges.
Be cautious, because after your cooling off period, any refund or extra fees are at the discretion of your provider – always make sure you check your T&Cs before cancelling. And remember that it doesn’t cost anything to change your policy at renewal. If you feel the charges are unreasonable, you can of course contact your insurance provider’s customer service department but you’ll need to provide an explanation of why you think the charges are too high.