When comparing park home insurance quotations, it is worth bearing in mind the hidden costs which are often overlooked. It’s a bit like cheap air fares where you pay an awful lot more for in hold baggage and other benefits that are often included in higher priced flights.
So what are the hidden costs – costs that are rarely, if ever, referred to in the quotation conversation but which are included in the copious small print you typically receive with insurance quotations?
Most specialist insurance intermediaries, including Paul Baker Insurance Services (PBIS), charge a policy or admin fee: in the case of PBIS it is £20; others charge a lot more, some charge less.
The fee is designed to cover some of the additional costs incurred by intermediaries. For example, and unusually, PBIS has delegated authority to handle and manage claims in house, a service often handled by the insurer. This is a costly service to provide in terms of staff, managing the claim from start to finish and reporting to insurers, but the company feels it is a very important part of the service it offers; as is the provision of freephone telephone numbers and 24-hour telephone answering – by people!
Up front fees such as these should be, and usually are, made clear at the outset. What may be less clear is what the fee is for.
Other fees can be charged for mid-term adjustments and cancellations. So if you request a change to the policy that requires new documents to be produced, you may be charged a fee as well as the pro rata additional premium which may apply if, for example, cover is increased.
And if you sell your home during the policy year you may not receive a pro-rata refund of premium and in many cases you will also incur a cancellation fee which may be around £30.
PBIS does not charge a fee for mid-term adjustments, for issuing duplicate policy documents or for cancelling the policy when you will receive a pro-rata premium refund.
So, when comparing the costs of insurance, it is worth asking what additional fees you may be liable for.