A great-grandmother is calling for a change in the law after a fire at her neighbour’s house last year has left her facing increased insurance payments.

Shelley Morgan managed to rush out of her home in Bower Lane, Maidstone, just in time last November after the house next door caught fire and left her property with substantial smoke damage.

The retired market worker has had to have the inside of the house redecorated and carpets replaced, while there is still work to be done to spruce up the exterior, 12 months on from the fire.

But the stress has only been made worse after it then emerged Ms Morgan would have to claim on her own policy for the damage suffered, as her neighbour was unable to claim on their own policy.

As a result, she has now lost her excess of £100 and has been told to expect a substantial increase in her premiums.

She said: “I’m so frustrated, surely everyone who has a house should be covered by insurance?

"A fire is already a traumatic experience as it is, people were banging on my doors and windows to make sure I was out.

“I was hit by a car two years ago and I’m still recovering from that - everything just seems to come at you at once, it’s been a real struggle.”

While most mortgage lenders insist homeowners have buildings cover in place to protect their investment, there is no actual legal requirement to have home insurance.

A Legal & General spokesman said company policy was there is no distinction made between ‘fault’ and ‘no fault’ claims for home insurance.

“Any claim registered will be recorded against the policy holder’s policy records and it should be understood future premiums may be impacted by that claim and payments made as a result," he said.

“In the event a recovery is successful, and that full costs have been recovered, we are sometimes able to refund the excess paid on the claim and adjust premiums to reflect our outlay.

"This is never guaranteed but is offered as appropriate and individual situation.”