Home insurance with an history of claims

Finding sensibly priced home insurance with an adverse claims history can be tricky, but with expert help from a specialist provider it needn’t break the bank.

What is an ‘adverse claims history’ and how does it relate to home insurance?

An ‘adverse claims history’ is industry jargon used to label someone whose previous claims are deemed to pose an additional underwriting risk. Different insurers use different criteria when determining risk, which is why it’s important to choose a broker with access to a wide market, but reasons can include: making a large claim, making several small claims or having a claim rejected. Often insurers aren’t interested in why a homeowner has made an ‘adverse claim’ which can be very frustrating, as it’s often down to bad luck such as being burgled or suffering from subsidence.

Why is home insurance more expensive after making a claim?

Insurance premiums are calculated to reflect risk and figures show that homeowners who have made one claim are statistically more likely to make another. Higher risk means higher premiums, and policyholders with prior claims can struggle to find affordable cover.

At least that’s how the story goes, but the truth is that some providers rely too heavily on technology and when ‘the computer says no’ they have nowhere to turn, which shrinks the market and pushes-up premiums. At Quoteline Direct we like to do things differently and by digging into your claims history we can get a much better idea of risk and find a policy that fits.

Do I have to tell an insurer about past home insurance claims when getting a quote?

When you take out a home insurance quote the provider will ask if you have made any previous claims and you’re legally obliged to tell the truth. Fudge the facts and the insurer is well within their rights to reject any claims and your policy won’t be worth the paper that it’s printed on. Worse still, you could be charged with fraud and be left with a criminal conviction as well as being seriously out of pocket. It’s worth noting that insurers share claims data via a central database (Claims and Underwriting Exchange) and honesty really is the best policy.

Am I looking at a lifetime of inflated home insurance premiums?

If you have made a substantial home insurance claim you can realistically expect to pay more at renewal, but with help from the right broker you needn’t be sentenced to a lifetime of prohibitively high premiums. Where measures have been taken to address the original cause of the claim (say a local authority has invested in flood defences or a property has been underpinned and shows no signs of subsidence) there’s no reason to keep paying higher premiums; provided you can find a sympathetic insurance broker.

How can an insurance broker help me find cheaper cover?

By treating customers as individuals, and not just raw data to be fed into a computer algorithm, we can tailor cover to reflect your individual circumstances. While some providers flatly refuse cover at any mention of a previous claim we take a little time to find out more and can make some serious savings. Sometimes it’s something as simple as disregarding a subsidence claim from a previous property, others it’s about paying attention to home security improvements following a burglary claim. Either way; we have got you covered.

How will a claim affect my home insurance No Claims Discount?

Homeowners often aren’t aware that they can build-up a No Claims Discount (NCD) in a similar way to car insurance. Careful policyholders are awarded discounts for claim-free years which can add-up to as much as 70% over a maximum of 4-5 years. Making a home insurance claim will put a dent in your NCD, typically reducing it by two years, but is unlikely to wipe it out completely. Remember that Terms and Conditions vary between providers so it’s important to read the small print before signing-up.

No matter what your claims history, Quoteline Direct can help find competitive cover for a wide range of additional household risks from accidental damage to home emergency cover. As a specialist broker, we can arrange cover for all types of property including those that are traditionally ‘difficult to insure’ such as second homes or listed buildings. To find out more visit our specialist home insurance pages or Tel: 0161 874 4171 to speak with a member of our team.