As you may be aware, a policy excess is the initial amount of a claim for an insured loss, which an insurer requires a policyholder to pay. The policyholder can agree to an increased excess in return for a reduction in premium.
The change we are making affects:
Policyholders who currently have a £50 policy excess on their Parishguard or Hallguard policies (excesses are detailed within policy documents). These customers will move to a £100 policy excess from their next renewal on or after 1 October 2011.
Policyholders who currently have a £100 policy excess on their Parishguard or Hallguard policies (excesses are detailed within policy documents) are receiving a premium discount. These customers will no longer receive this discount from their next renewal on or after 1 October 2011. The withdrawal of the discount for these customers will lead to a maximum overall premium increase of 3%, in addition to any increase arising from the application of index linking.
All customers will have the option of increasing their policy excess beyond £100 should they wish to do so, in exchange for a premium discount.
Why we need to make this change
We are not making this change lightly as Ecclesiastical is very conscious of the difficult financial position of many parishes, and we have not changed our policy excess since the early 1990’s. Unfortunately during this time, claims costs and numbers have risen substantially. Small claims incur a handling cost as well as the settlement and all of these factors combine to increase the overall cost of insurance.
Did you know?
Comparable commercial insurance policy excesses are commonly in the region of £250 and even household insurance policies often have a minimum policy excess of £100.
Parishes can call our Customer Services Team on 0845 777 3322 or speak to their local Insurance Consultant and Surveyor.
I hope that this notification is helpful and that you understand that at Ecclesiastical we are not immune to financial pressures and, in order to ensure that we can continue to offer all our Anglican Church customers appropriate products, service and premiums, we need to make this change.
Head of Business Relationship Management
Direct Insurance Operations