Changes follow FSA inquiry into broker’s selling of home insurance products

Barbon has completed a wide-ranging overhaul of its business procedures following an FSA enquiry into the sale of home insurance products.

The broker’s actions include amendments to policy wordings, documentation and terms of business agreements.

The FSA looked at how contents insurance was sold through Barbon’s HomeLet brand. It was found that clauses in HomeLet’s letting agents tenancy agreements breached FSA guidelines. Tenants were told they had to take out contents insurance for their own possessions, when in fact it was voluntary.

A Barbon spokesman said the company had “investigated thoroughly the areas of potential concern” and taken numerous actions.

The changes come as Barbon’s latest accounts reveal that the company took a £2.5m charge in 2011 to pay for the blunder.