Beware park home insurance that is ‘too cheap’

Customers of 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.

This situation demonstrates that there’s much more to choosing an insurer for your park home than just the premium. If the premium looks too good to be true, then it probably is.

Financial strength and security

At Park Home Assist, all of our policies are underwritten by Canopius – one of the Lloyd’s top insurance underwriters. Insurers are rated by different 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’ credits ratings here: https://www.canopius.com/about-canopius/security/

When selecting an insurer for your park home or holiday lodge, remember that its value really comes into its own 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 park home insurance, call our Northampton office and speak to one of our insurance advisers on freephone 0800 988 0900.

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