|If you have been surprised by your insurer’s decision to cancel or not renew your buildings and contents insurance because you have had too many claims then the team at Home Insurance Help should be able to help you.
The first thing to make you aware is that you are not alone, we help many people each year in such a situation. Sometimes they have just been unlucky and after years of not claiming, several serious events have occurred which have resulted in several claims over a short period of time. On occasion we also find that some customers have made a series of rather small claims which although perfectly legitimate claims, have triggered the insurers automatic cancellation process. The interesting point is that, in our experience, insurers will treat both these customers the same and not offer renewal. In the case of somebody who has naively made a series of small claims they can find that the cost of future insurance is more expensive and may cost more than the previous claims combined. This is because any new insurer will at first be concerned that the series of small claims will continue. They therefore try to combat this by an increase in premium and asking you to pay a much higher excess. The aim of both of these actions is to try to encourage you to only claim for really serious loss or damage.
Another issue that that can cause an insurer to cancel a policy due to too many claims is when you enquire whether an event is covered but then don’t proceed to submit a claim. To explain further ; Imagine a customer who had a big claim for a damaged roof two years ago, has also made a claim for a water leak 6 months ago. They now accidentally spill red wine on to a beige carpet and no matter how much they try they cannot remove the stain. The customer calls the insurer to discuss making a claim and the impact it would have on their policy. They estimate that it would cost about £300 to replace the carpet. After making the call they decide not to claim on their insurance because they will have to pay £100 excess in any case and they feel the impact on their no-claims bonus makes it not worth claiming. They therefore replace the carpet entirely out of their own money.
They are surprised therefore that when their insurer writes to them three months later at the time the policy is due for renewal, the insurer refuses to renew their cover, stating that they have had three claims in three years. The customer naturally fells that they have only had two claims, but they fail to understand that irrespective of whether they claimed for it or not the damage to the carpet is an insurable event which has been disclosed to the insurer.
We appreciate that all of this can be confusing, frustrating and worrying, however our role is to remove all of the stress for you. Our team will work with you and our specialist insurers to get you back on cover in no time at all. We have on one or two occasions even saved customer money on their previous premium !!