What is deposit and stage payment protection?
You may be asked to pay a deposit or make a stage payment when you place an order for your home improvement installation. This is normal practice for most companies as it helps to safeguard them against manufacturing products they will probably not be able to use elsewhere should a customer cancel their order.
How much of the deposit or stage payment is covered?
If your installer has registered you for Deposit Protection Insurance via the scheme, this means that up to 25% of any deposits and stage payments paid by you (up to 25% of the contract value or a maximum of £50,000, whichever is the lesser) are protected by the Deposit Protection Insurance, subject to the insurer’s terms & conditions. The policy will last for 120 days from the date the deposit was paid.
Please note: any payments (deposits and stage payments etc.) made by you to the installer exceeding 25% of the contract value prior to final installation and completion of the contract are not covered by the scheme or the insurers in any way, and you must be aware that should you pay above the 25% amount prior to completion you do so at your own risk.
COVID-19 Note: Deposit Protection Insurance – Policies Issued From 1st June 2020
Usually, the policy will cover any deposit or stage payment you pay, in full, to a maximum of 25% of the total contract price (maximum £50,000). However, due to this challenging COVID-19 period, for policies issued from 1st June 2020, the insurer will only provide combined cover (for deposits and stage payments) up to a maximum value of £5,000. This continues to be under constant review.
How long will the policy last?
The policy will last for 120 days after the date of payment of the deposit, or upon completion of the contract, whichever is the earliest.
Why do I need deposit and stage payment protection insurance?
In the past, people have paid deposits or stage payments, only to find the company has ceased trading before the installation has begun. In these cases, most times, the customer loses their deposit or stage payment and is in the unfortunate position of having to find another contractor, negotiate a new price and make another payment before the work can commence.
Using HIES accredited installers eliminates this problem.Find a HIES accredited installer
What happens once a deposit has been paid?
Receipts & Copy Contracts
You must ensure that you receive a receipt for any and all payments made to your installation company and a copy of the contract and written guarantee between yourself and your installation company. You must keep copies of these in a safe place as these will be needed should you need help and wish to make a claim a later date. Failure to keep copies of these documents and provide copies when requested by either the scheme or the insurers may invalidate any potential insurance claim/s you may make.
Check You Are Registered With The Scheme
You must check that your contract with the installation company is registered with the scheme and that you receive your documentation from the scheme. If you and your contract are not registered with the scheme, then no financial protection is in place either from the scheme or the insurers. If you have any questions or would like to double check you are registered please contact the scheme on 0333 323 2655 or email firstname.lastname@example.org
Once you have signed a contract with a HICS member and paid your deposit, the member must register your details online with HICS within 48 hours. We will then send your:
- Customer Registration Certificate – confirming your details are registered with HICS and the comprehensive protection provided to you.
- Deposit and Stage Payment Protection Certificate – this protects any deposits or stage payments you may make to the supplier in accordance with the details above.
Please keep the above documentation in a safe place along with any contractual documentation.
How do I make a claim?
A claim can be made simply by contacting the insurance provider directly and they will ask you to complete a claim form and submit this together with evidence of your contract with the HIES member and proof of payment.