Watchdog pours cold water on leak insurance

Most of the UK’s biggest water companies are promoting potentially unnecessary insurance costing consumers more than £100m a year, according to a watchdog.

Which? found 10 of the 12 biggest companies were promoting “expensive” supply pipe insurance with their own free pipe repair schemes, which customers are automatically entitled to use.

Millions of customers will have bought insurance they do not need and will never claim on, the consumer group said. Which? executive director Richard Lloyd added: “It’s totally unacceptable that water companies are pushing potentially unnecessary water supply pipe insurance from third-party private companies. Few companies highlight their own assistance schemes, and most fail to tell you that your home buildings insurance may overlap on the key benefits of cover.

“We also want to see the Government and Ofwat take action to stop water companies from confusing consumers by promoting third-party pipe insurance under their own banner.”

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