HSBC has clarified guidelines on its home insurance policy following comments released by Confused.com.
The bank announced details of its five-year fixed home insurance premium this week, commenting that the policy offers new and existing mortgage customers the opportunity to freeze their premiums.
However, customers are not locked into a five-year policy, the bank has asserted, noting that policies are reviewed year-on-year with the assurance that premiums will not change within the five-year period if the customer continues with the home insurance policy.
Launching the offer this week, HSBC commented that the fiver-year fixed-rate home insurance policy could benefit consumers concerned about increasing insurance costs in the wake of the flooding across England this summer.
"HSBC has not adjusted premiums to reflect the impact of flood-related claims for these customers," the bank said.
Head of insurance propositions for the bank Dennis Smith recently commented that the scheme could appeal to the "vast majority of homeowners [who] favour the stability of a fixed-rate mortgage", amid fears of rising insurance costs.
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