TSB offers customers £100 to cover exit fees

HOMEOWNERS are being charged £27.7 million a year to switch home insurance deals, research reveals.

Every year an estimated 1.26 million customers leave their insurer part way through their contract.

Often this is down to a change in circumstance leading to a big hike in their premium, such as working from home instead of in an office. But if they move, the average exit fee is £ 22, according to figures from TSB bank. In some cases it can be as high as £55.

To encourage more homeowners to switch, TSB is offering to refund up to a maximum £ 100 in exit charges charged by its rivals if customers move to the bank. It doesn’t charge admin fees for making an adjustment to a policy.