Menu
17/04/2012
Millions Of Customers Mis-sold Water Pipe Insurance
A watchdog has found that millions of British homeowners have been missold expensive and potentially unnecessary water pipe insurance of around £35 a year.
Which? has found 10 of the 12 largest water companies promoted the supply pipe insurance, despite many customers automatically being covered by their free policies.
They have calculated that customers could have spent more than £100m on the insurance, which they say they “don’t need and won’t claim on.”
The revelation, which relates to third-party water pipe insurance providers Homeserve, comes as water companies face accusations of wasting water through failing to repair their own leaks during the drought.
As households submit to a summer-long hosepipe ban, nearly half of companies have been criticised for not doing enough to stop mains supplies leaking.
Last month it was reported nearly 300m gallons of water could be lost per day though leaks and companies have vowed to improve.
In an article for customers, Which? wrote: “Millions of customers buy specialist insurance they don’t need and won’t claim on.
“All ten water companies offer their own free pipe repair schemes, which you are automatically entitled to use. But information on these schemes is often hard to find on the companies’ websites.
“According to Homeserve’s marketing, 8% of homeowners have a water pipe emergency, such as a leak, ‘at some point’.
“Given that people could own their home for 20 years or more, we think the risk of your water supply pipes rupturing is relatively low, so it makes sense to check the cover offered by your buildings insurance policy and water company before forking out for expensive cover you’ll probably never use.”
Which? has found 10 of the 12 largest water companies promoted the supply pipe insurance, despite many customers automatically being covered by their free policies.
They have calculated that customers could have spent more than £100m on the insurance, which they say they “don’t need and won’t claim on.”
The revelation, which relates to third-party water pipe insurance providers Homeserve, comes as water companies face accusations of wasting water through failing to repair their own leaks during the drought.
As households submit to a summer-long hosepipe ban, nearly half of companies have been criticised for not doing enough to stop mains supplies leaking.
Last month it was reported nearly 300m gallons of water could be lost per day though leaks and companies have vowed to improve.
In an article for customers, Which? wrote: “Millions of customers buy specialist insurance they don’t need and won’t claim on.
“All ten water companies offer their own free pipe repair schemes, which you are automatically entitled to use. But information on these schemes is often hard to find on the companies’ websites.
“According to Homeserve’s marketing, 8% of homeowners have a water pipe emergency, such as a leak, ‘at some point’.
“Given that people could own their home for 20 years or more, we think the risk of your water supply pipes rupturing is relatively low, so it makes sense to check the cover offered by your buildings insurance policy and water company before forking out for expensive cover you’ll probably never use.”
Related UK National News Stories
Click here for the latest headlines.
07 November 2003
Water price rise proposals 'unacceptable for customers'
WaterVoice has today described companies' proposals for billing as "unacceptable to customers in their current form", and called on water companies, regulators and the government to "think about customers' priorities" in terms of value for money.
Water price rise proposals 'unacceptable for customers'
WaterVoice has today described companies' proposals for billing as "unacceptable to customers in their current form", and called on water companies, regulators and the government to "think about customers' priorities" in terms of value for money.
09 January 2014
Burst Water Main Causes Chaos
A burst water main has caused considerable flooding in Glasgow. A statement from Scottish Water said: "An issue with a faulty valve which regulates pressure has resulted in burst water mains in Mount Stuart Street, Shawlands; Cowcaddens and Duke St at the junction of East Wellington Street and Shettleston Road.
Burst Water Main Causes Chaos
A burst water main has caused considerable flooding in Glasgow. A statement from Scottish Water said: "An issue with a faulty valve which regulates pressure has resulted in burst water mains in Mount Stuart Street, Shawlands; Cowcaddens and Duke St at the junction of East Wellington Street and Shettleston Road.
18 January 2007
Water companies lift hosepipe bans
Several water companies have eased restrictions on water usage by lifting hosepipe bans today. Thames Water, Southern Water, Three Valleys Water and Sutton and East Surrey Water have announced the end of restrictions this morning. However, customers of South East Water and Mid Kent Water remain subject to hosepipe bans.
Water companies lift hosepipe bans
Several water companies have eased restrictions on water usage by lifting hosepipe bans today. Thames Water, Southern Water, Three Valleys Water and Sutton and East Surrey Water have announced the end of restrictions this morning. However, customers of South East Water and Mid Kent Water remain subject to hosepipe bans.
01 March 2006
Water firm to introduce meters
A water company in the south east of England has been given permission to install compulsory water meters in homes. Folkestone and Dover Water Services was granted "water scarcity status", which will allow it to force all 65,000 homes in its service area to install meters.
Water firm to introduce meters
A water company in the south east of England has been given permission to install compulsory water meters in homes. Folkestone and Dover Water Services was granted "water scarcity status", which will allow it to force all 65,000 homes in its service area to install meters.
11 August 2008
Water Companies Submit Water Pricing Proposals
The UK's largest water and wastewater services company, Thames Water, has announced it expected its bills to rise by about 3% a year above inflation. However, the company said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company.
Water Companies Submit Water Pricing Proposals
The UK's largest water and wastewater services company, Thames Water, has announced it expected its bills to rise by about 3% a year above inflation. However, the company said its £6.5bn investment plan would be the largest spending programme carried out by a UK water company.
-
Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
