Renewing House Insurance

[Paul Bradford]

This might be of some use to owners out there!

We renewed insurance this year with a new company, having been contacted by them. Our previous company had been French and we had just received the renewal. The new company were aware that we had the property as we had transferred currency through them. The advantages of changing insurers were that the policy would be in English and offered great cover as we only go over in school holidays until we move for good next year.

We sent back our renewal with a note saying that we didn't require the cover. (It was not due for renewal for another couple of weeks).

To cut a long story short we found out that the French insurance is renewed automatically unless we give them two months notice. You also do not get a refund for part use of a year i.e. if you sell the property.

We contacted the new company who state that we did not cancel within 14 days so will be subject of a hefty cancellation fee.

This is now subject of further correspondence.

We have found out that some insurers require three months notice that you will not be renewing your home/contents insurance.

Please take this into consideration if you are looking to change your insurer.

Regards

Caroline & Paul Bradford

[Will]

Thank you for the reminder.

You will probably be pleased to know that although what you describe has been normal practice up to now in France, the French law on renewable contracts is changing so that things will become much closer to what you are used to in Britain, i.e. the contract automatically lapses if you do not renew, rather than is automatically renewed unless you cancel with a specified period of notice. This will allow much more freedom of movement between providers for customers (you have to ensure that you meet your legal obligations regarding being insured though, so it puts more of an onus on you to either renew or replace contracts).

In fact I thought the new law had already come into force for insurance - maybe not all types of insurance are included yet.

[Bobdude]

You have prompted me to actually read my renewal notice which actually arrived today, although the renewal is due on the 1st December. The relevant bit on the reverse is, I think, ''Vous disposez d'un delai de 20 jours, a compter de la date d'envoi cet avis, pour resilier votre contrat par lettre recommandee''. The letter is dated the 17th November, so that appears to mean I can still cancel it if I choose to go with another insurer.

[BJSLIV]

In future   the contract automatically lapses if you do not renew.

No, they haven't gone that far. The new law requires the company (insurance, phone, internet, satellite TV etc ) to give notice that the contract is coming up for renewal, and hence the opportunity to cancel, by recorded delivery of course!

If you don't notify cancellation within the rules, the contract is still automatically renewed.

http://www.economiematin.com/article.php3?id_article=1176