Home insurance – missed, late or failed payment fees

Keys, wallet, phone – it’s like a mantra before you leave the house. But, as most of us know, it’s all too easy to forget things, even when you try really hard to give yourself reminders. So when it comes to insurance – which you can’t even see or hold – it’s even easier to forget what’s due and when. But what are the consequences if you’re late or accidently miss a payment or it fails because of a technical glitch? 

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Help! I’ve missed my insurance payment

If you’ve missed a payment, contact your insurance provider as soon as you can – they’ll usually be able to take immediate payment over the phone. If you pay by DirectDebit and your payment has failed, then in most cases, your provider will try again the following week. If you’re in any doubt whether a payment’s gone through, always speak to your insurance provider. They’ll be able to check your account and reassure or advise accordingly.

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What are the consequences of a missed home insurance payment?

Missing an insurance payment will usually be an oversight, but if you don’t think you can afford to make the next payment, then it’s important to speak to your insurance provider immediately; they may suggest an alternative payment date for when you do have cash in the bank. Whatever you do, don’t go all ostrich and bury your head in the sand – because it’ll come back to bite you.

You don’t need us to tell you that missing any sort of payment is bad. The consequences aren’t just immediate but it could affect your long term credit history. According to credit check company Experian, your credit report shows any missed payments for the last six years. Having a record of missed payments will have a negative impact on your credit score meaning you could struggle to get a credit card, mortgage or loan in the future.

Not paying your monthly home insurance premium means your policy could lapse. In your terms and conditions your provider has probably stated something along the lines of you needing to keep up with payments to ensure your policy stays active. If you don’t, they can issue you with a cancellation notice. Not having an active home insurance policy means that there’s no pay-out if something happens to your home or contents such as incidents of theft, fire, flood or storm damage. Having your home insurance cancelled can also have other consequences – you can find out more here.

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Never miss a payment – top tips

Try setting yourself reminders (putting them somewhere that you’ll see them or on your phone) so that you either don’t forget to pay or so that you can ensure there’s enough money in the bank. If you can, make insurance payments up front rather than monthly. Annual payments have two benefits – first, it means you don’t have to worry about forgetting payments. Secondly, you could end up paying less because monthly payments often attract surcharges on top of your premium cost.

If monthly payments are the only realistic way you can afford your insurance, then set up a DirectDebit so that your bank makes payment automatically. Just make sure you have enough money in your account or you have an overdraft facility that you’re happy and able to use.

Don’t pay more than you have to

Of course, having affordable home insurance in the first instance should be the priority. Which is why we’re here, so you can comparethemarket for the best policy to suit you – look for one that covers everything you need – not necessarily the one that speaks loudest to your wallet – because you never know when you might need it.