Understanding Cancellation Fees for APOLLO Tenant Insurance Policies
When cancelling a tenant insurance policy with APOLLO, it's essential to understand how cancellation fees are calculated and what factors influence them. Below is a comprehensive guide to help you navigate the details of cancellation fees.
What Are Cancellation Fees?
Cancellation fees are charges applied when you decide to terminate your tenant insurance policy before its end date. The amount of these fees depends on various factors, including how much time remains on your policy at the time of cancellation and the cancellation date.
Mid-term cancellation, for example, involves terminating a policy before its original expiry date. If a policy starts on April 1, 2025, and ends on April 1, 2026, cancelling it at any date prior to April 1, 2026 is considered mid-term.
Understanding the R7 Cancellation Table
The fee for cancelling a policy is calculated using the R7 short rate cancellation table, which is a standardized tool referenced in your policy documents. This table factors in the date of cancellation, the duration of the policy, and the premiums paid. Taxes and policy fees, however, are non-refundable and fully earned, regardless of the cancellation date.
This short-rate method often results in fees equivalent to 3–4 months of premiums for cancellations early in the policy term. It ensures that premiums charged are adjusted fairly based on benefits used before termination.
Key Takeaways About the R7 Table:
The R7 table helps determine the proportion of premiums earned versus refundable.
Cancellation fees are calculated using the short-rate table, and for early cancellations, they often equate to 3–4 months of premiums.
A future-date cancellation might incur higher fees, as it accounts for time on risk up to the specified cancellation date.
Cancellation Scenarios
Here are important examples of how cancellation fees might apply:
1. Cancelling Midterm
If you cancel midterm, you will be charged for the time on risk up to the cancellation date.
Any non-refundable charges, such as taxes and policy fees, remain due.
2. Cancelling on the Renewal Date
If you cancel on the exact day of renewal, you will typically be charged for the current month’s premium but not for the following month. A midterm cancellation fee may still apply depending on when the decision is finalized.
3. Receiving a Cancellation Fee Quote
You can get an exact quote for your policy's cancellation charges through the client portal. The portal allows you to input your cancellation request and view estimated fees before finalizing your decision.
Policy duration and date of cancellation determine the charges or any potential refunds.
How to Cancel Your Policy
Follow these steps to cancel your policy and confirm your fees:
Log in to Your Client Portal: Visit the online Apollocover portal.
Navigate to Cancellation Options: Select the option to cancel your policy.
Review the Quote: The portal will display an estimated range for fees or refunds based on your cancellation date.
Finalize Cancellation: Confirm the cancellation once you've reviewed the details displayed in the portal.
Can Cancellation Fees Be Waived?
No, mid-term cancellation fees cannot be waived or reduced under any circumstances. This policy applies universally to ensure fairness and consistency.