Changes to HIC and BTL – April 2009

Product update from Legal & General

Important information - changes to our Home Insurance choices (HIC) and Buy to Let Property Insurance (BTL) policies

We are making some changes to our Home Insurance Choices (HIC) policy. The following changes will affect renewals due on or after 23 April 2009. The dates for new business vary. Your clients will receive an amendment notice in their welcome (where changes affect new business) or renewal pack explaining the changes. Please read below for full details.

Legal helpline and family legal protection administrator (HIC)

We are changing the administrator of our legal helpline and family legal protection cover from Capita Insurance Services to DAS Legal Expenses Insurance Company Limited. The change will affect all new business and renewals due on or after 23 April 2009.

Please note, if any of your clients take out a policy or renew before 23 April 2009, they will continue be serviced by Capita until their policy is up for renewal. For example, if your clients renewal date is 30 March 2009, they will be serviced by Capita until 29 March 2010. Following that, they will be then be serviced by DAS.

Legal helpline

The helpline provides your client with expert advice on a personal legal or tax problem, that directly affects them but not their business or profession. The advice is free of charge; they only pay for the phone call.

Until the provider changes clients should continue to contact Capita. Following their first renewal after 23 April 2009 your clients should call 0370 050 0962. Call charges will vary and calls will be recorded and monitored.

Family legal protection claims

If your client has optional family legal protection, should they wish to make a new claim following their first renewal after 23 April 2009, they should call 0370 050 0962. Call charges will vary and calls will be recorded and monitored.

If your client has an existing claim that they have already reported, their claim will continue to be dealt with until conclusion by Capita Insurance Services and they should continue to use the current contact number for that claim: 0870 523 4511.

Consequential loss wording

The FSA have instructed insurers that they consider the term ‘consequential loss’ to breach the unfair contract terms regulation. Therefore, we’ve removed all references to consequential loss from our Home Insurance Choices and Buy to Let Property Insurance policies and replaced it with:

Indirect loss or damage

We will not pay for any losses that are not directly associated with the incident that caused you to claim, unless specifically stated in the policy.

Change to escape of water excess - HIC and BTL

Your clients have to pay a policy excess of £100 for loss or damage, caused by escape of water. We are increasing that excess to £250. This change will affect renewals due on or after 23 April 2009. The change for new business is currently planned to come into effect from 20 June 2009. We will advise you shortly about your pipeline cases.

If your client has chosen a voluntary excess to reduce their premium, we will deduct both the policy £250 excess plus the voluntary excess from their claim. For example, if your client has chosen a £100 voluntary excess, we will deduct this along with the £250 excess for escape of water meaning the total excess will be £350.

We sometimes apply an additional compulsory excess to a policy by adding an endorsement (which would be shown on the schedule). If so, this would be added to the compulsory and any voluntary excess.

If your client were to make a claim under more than one section of their policy (i.e. buildings and contents) for loss or damage which happened at the same time by the same cause, we would only deduct one excess. If the excesses are different, your client will need to pay the higher amount.

Premium Waiver is no longer available

The Premium Waiver section of the HIC policy is being withdrawn and cover will no longer be available. This change will affect new business later in the year in line with planned product enhancements.

Your client will still be able to claim if the first day that they have to miss work due to accident, sickness or involuntary employment, is before their current period of insurance expires, and provided their home insurance policy is renewed for a further 12 months.

We will waive their premium payments until they can go back to work, or once 12 monthly payments have been waived, whichever happens first.

What do I need to do?

There is nothing you need to do. An amendment notice will be inserted into all your clients’ welcome (where changes affect new business) and renewal packs, until our policy documentation has been updated, in line with product enhancements later in the year. We’ll contact you again nearer this time.

If you have any queries, please don’t hesitate to contact your Legal & General National Account Manager, or the IFA support team on 0800 316 5864, choosing option 2. Lines are open from 9am to 5pm Monday to Friday.

Thank you for your continued support.