People who bought insurance for their holiday lodge or caravan from Now4Cover have unfortunately been left high and dry after their insurer, LAMP Insurance Company, went into liquidation. This means that they are no longer able to meet any claim payments. So, if customers of Now4Cover have an outstanding or new claim, it is unlikely to be met. In addition, although any LAMP insurance policies that have not expired will remain in force, they are effectively void as LAMP is unable to pay out on any claims. It is also unlikely that LAMP will be able to refund any premiums to Now4Cover customers who cancel their policy. Policyholders are recommended to seek alternative insurance protection and apply for compensation through the Financial Services Compensation Scheme (FSCS). However, they will only be able to recover up to 90% of the money they have lost, and this is likely to take some time.
We all want value for money when buying insurance, but this shows that there’s much more to choosing an insurer for your holiday lodge or caravan than just the premium. If the price looks too good to be true, then it probably is. Companies can’t sustain such low prices for very long, resulting in the risk of liquidation. Policyholders of Now4Cover have found out the hard way that it is a false economy to purchase ‘cheap’ insurance, and are now finding themselves to take out another policy for the same cover having lost their premium and cover with Now4Cover. Of course, no-one wants to pay too much either, but our experience is that true cover from respected insurers, the difference in premiums are in fact marginal, maybe less than 10%, so if the saving is in fact more, there is likely to be a material difference.
Financial strength and security
At My Holiday Home Insurance, all of our policies are underwritten by one of the Lloyd’s top insurance underwriters – Canopius. Insurers are rated by various agencies according to their financial strength and security, and Canopius is rated AA- (very strong), A+ (strong) and A (excellent) by three of the major ratings agencies respectively. See the details on the strength of Canopius’ credit ratings here https://www.canopius.com/about-canopius/security/.
When selecting an insurer for your holiday lodge or caravan, remember that its true test is when you need to make a claim. You need to be confident that the insurer will pay out, and that your claim will be handled professionally and efficiently with no nasty surprises. You should also check out independent insurance reviews and testimonials as part of your research.
For more information, or for a quote for your holiday lodge or caravan insurance, call our Northampton office and speak to one of our insurance advisers on freephone 0800 988 0890.