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Homeserve suspends telephone sales

Internal enquiry probes insurance mis-selling

Plumbing repair

HomeServe provides emergency repairs for plumbing, heating and drains

The emergency insurance provider HomeServe  suspended telephone sales yesterday (30 October 2011) after an internal review uncovered possible misselling. Its customer service department remains open as normal.

Home emergency insurance

Home emergency insurance gives peace of mind to many homeowners, particularly in the winter when the risk of boiler failure or burst pipes is at its height. It is, however, an expensive product,  and many customers end up paying for additional cover they never use. 

Some home insurance policies cover emergency cover as standard, but most people buy it as an extra – either from their main provider or from a standalone insurer, such as HomeServe. 

Internal enquiry prompts action   

HomeServe announced on Sunday 30 October that it was suspending all telephone sales after an internal review suggested some staff had been misselling insurance. A statement issued by the company said: 

‘Over the past month, HomeServe has been undertaking a comprehensive review of its UK telephone sales operations and procedures including commissioning an independent report from Deloitte. This review showed that there were cases where its sales processes did not meet the Company’s required standards.

‘Following this review, the Company has therefore decided to suspend all telephone sales and marketing activity. The Company’s service to customers making a claim or renewing their policy is unaffected by this decision.’

HomeServe chief executive Richard Harpin said: ‘We are determined to ensure customers receive the highest standards of service and we have therefore taken swift action to address the issues identified by our review.’

More on this…

  • Home Emergency Insurance – what it covers and how it works
  • How to buy the best boiler – read our step-by-step guide
  • How to complain about financial services – what do if you think you’ve been missold
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