Domestic services deposit insurance
Customer Protection Association Ltd
What did we think was unfair?
A term set out the length of the policy in an unclear way.
Why did we think it was unfair?
It was difficult to understand when the insurance cover ended, which was actually on the estimated installation date. This would not cover circumstances where installation was delayed, which is one purpose of the insurance.
Also, if the customer wanted an extension of the insurance, they may not be able to contact the installer. If the installer was about to stop trading, they would be left without insurance for the deposit already paid.
What has the firm done?
They changed the term to say the length of the policy is now 90 days, beginning on the date the deposit is paid and ending when work starts or the contract is cancelled. It also now says the firm may be able to arrange for an extension of the policy if installation does not start within the 90 days. Customers can contact the firm to extend the cover if appropriate.
Old term
'This indemnity covers for a period of ten weeks from the date of contract or until the estimated installation date, whichever was sooner.'
New term
'Period of Insurance
90 Days from the Date Deposit Paid as stated in the Schedule. Cover also ends upon the commencement of the work or cancellation of the contract. IF THE WORK DOES NOT COMMENCE WITHIN 90 DAYS THEN PLEASE CONTACT THE ADMINISTRATOR AT THE ADDRESS BELOW WHO MAY BE ABLE TO ARRANGE AN EXTENSION OF YOUR COVER.'
What next?
Read more agreements from firms – see Unfair contracts.
Read more about Insurance.
Read more about our work on Unfair contract terms.