Insurance rip-offs are a Nationwide problem

It’s usually one of the better behaved providers, but Nationwide stands accused of overcharging loyal customers

First the bad news. When I promised last week to name and shame the companies accused of overcharging loyal customers for home insurance, I didn’t think it was going to feature Nationwide, usually one of the better behaved financial services providers. The good news is that Nationwide has relented, in one case at least – although like other insurers it is kicking back against accusations of rip-off pricing.

The case of a retired London professor, John Stanworth, is among the most egregious. He lectured on business ethics and social responsibility, one reason he stayed with member-owned Nationwide for 40 years. Nationwide’s home insurance is provided by Direct Line, which in recent years raised Prof Stanworth’s premium to £1,100 for cover he could find elsewhere for about £300. Worse, when he made a £3,850 claim for flood damage, the loss adjusters reimbursed £400.

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