Aviva doubled customer's home insurance premium due to claim

Reader Peter Timberlake last year paid £1,270.37, but when the paperwork came through from the insurance broker, the premium to renew was quoted as £2,589.39, a staggering 103 per cent increase

A reader knew the premium would go up after claiming for water damage. But the rise was huge (AFP/Getty Images)

Here's a sobering and salutary tale for anyone thinking of renewing their home insurance with their existing provider. The lesson? Don't!

Reader Peter Timberlake reported that his household policy with Aviva was due for renewal this month. "Last year I paid £1,270.37," he said. "But when the paperwork came through from the insurance broker, the premium to renew was quoted as £2,589.39, a staggering 103 per cent increase." This wasn't just blatant profiteering – he had been forced to make a claim recently after one of his lounge radiators leaked.

"We replaced the carpet and the curtains in the room and the value of the claim was around £3,500. So I had half expected there would be an increase in the premium – but not by anything like that much."

It turned out the renewal was automatically generated by Aviva, and when questioned, the insurer said the claim was to blame. Whatever the reason, Peter wasn't going to accept a doubling in price.

An insurance broker found a quote with another insurer for £816.50 – a massive drop. But the policy wasn't to his liking. "The cover details were the same but the excess was higher at £500 and there were too many exclusions," he said.

Peter tried Saga, which offers insurance to people aged 50 and over, and there he found a much better deal. "I got a quote for £739.48. Even better, the excess is only £150 and the exclusions much less onerous."

The new deal means he will save £1,800 on home insurance this year. You could certainly cut insurance costs by not renewing, but it's unlikely you could save that much. Or is it? I would love to hear your stories of saving by switching insurance companies.