Claims in the last 5 years?

tonome

I'm jointly named on my mother's home contents insurance policy

I own my own home and am looking for new buildings insurance for that property.

2 years ago my mother claimed for contents damaged in a fire in her home.

When I'm asked if I have made any claims in the last 5 years, is this claim of my mother's relevant as I'm also named on her policy? Or is the "any claims in the last 5 years" referring to my home only that I'm trying to insure?

Or let's say that last year I made a claim on a motor insurance policy - do I have to disclose this on the buildings insurance application when asked if any claims in the last 5 years?

Thanks - Tonome

clear_blu

Motor claims would have no bearing on house insurance and would not need to be declared.If you are jointly named on your mothers insurance then you should answer 'yes' but I would enclose an brief explanation of the situation.Records of claims are kept by insurance companies so it's better to declare it now than chance paying premiums for years only to have a claim refuted in the future.

tonome

"Motor claims would have no bearing on house insurance ", then surely contents insurance and buildings insurance are themselves separate and not-related ? Tonome

*MF*

In the most general of terms what the Insurers are trying to do in asking for details of past claims is form an idea of the risk you may present to them - obviously a person with no claims over 5 years - on the face of it - may appear to be a better risk than someone who has had a catalogue of claims ...

Again - in general terms - having a fire in a building but which only damages the contents does link both contents and building, as would many other claims.

In specific terms Insurers can void a policy and deny any claim - where it becomes clear after the event - that a "material fact" has NOT been disclosed, a material fact being one which would have altered their judgement of the risk being offered for insurance.

It is better, by far, to provide the Insurers with all the information they ask for even if it is NOT clear to you that it is relevant, it may be to the Insurer.

If you make that "judgement call" and don't disclose something - then there is a risk (why take it?) that a subsequent claim is not paid - there are a fair number of threads on this very forum which demonstrate that. not in theory but in practice.

FlameCloud

clear_blu wrote: »

Motor claims would have no bearing on house insurance and would not need to be declared.

Says who? The question will be something like 'have you had ANY claims...'. Doesnt specify one way or the other- so you are just assuming (wrongly) that they might not want them.

AS *MF* says, give the insurer the information and they can make the decision, then it cannot come back and bite you at a later date.

clear_blu

FlameCloud wrote: »

Says who? The question will be something like 'have you had ANY claims...'. Doesnt specify one way or the other- so you are just assuming (wrongly) that they might not want them.

AS *MF* says, give the insurer the information and they can make the decision, then it cannot come back and bite you at a later date.

I must admit that it is some time since I left the 'business' so that your knowledge will be more up to date than mine. Just to re-iterate what you are saying, if I decide to renew my BUILDING and CONTENTS with a new company I have to disclose any MOTOR claims within the last 5 years. What about travel insurance claims or pet insurance claims and dont forget personal accident claims. Then there is always m.p.i. claims and of course any repairs to electrical equipment covered by the extended warranty insurance. Not forgeting Life Assurance and oh yes I have my central heating system insured with the Gas Board. They must produce HUGE proposal forms nowadays........lol

FlameCloud

clear_blu wrote: »

I must admit that it is some time since I left the 'business' so that your knowledge will be more up to date than mine. Just to re-iterate what you are saying, if I decide to renew my BUILDING and CONTENTS with a new company I have to disclose any MOTOR claims within the last 5 years. What about travel insurance claims or pet insurance claims and dont forget personal accident claims. Then there is always m.p.i. claims and of course any repairs to electrical equipment covered by the extended warranty insurance. Not forgeting Life Assurance and oh yes I have my central heating system insured with the Gas Board. They must produce HUGE proposal forms nowadays........lol

Whats your point? Insurers are able to (technically) void any contract of insurance based on misrepresentation. You might as well chuck everything at them so they can make up their own minds, then the policy holder wont be in the crap come claim time if the insurer really doesnt want to play ball.

clear_blu

My point is that you are correct that an insurer can refute a claim if you fail to disclose a material fact, however when considering a proposal for building or contents they would not consider a motor claim material. Well at least in my experience which includes over 20 years as a manager for a leading insurer that is true. What is your experience??

*MF*

clear_blu wrote: »

My point is that you are correct that an insurer can refute a claim if you fail to disclose a material fact, however when considering a proposal for building or contents they would not consider a motor claim material. Well at least in my experience which includes over 20 years as a manager for a leading insurer that is true. What is your experience??

More than happy to PM you details of my experience - I hope you might accept it is sufficient. without me so doing - but your call and subject to it remaining entirely private.

Let me pose these two questions (it is based on a real case):

The person proposing for buildings and contents lives in a house with an integral garage - last year his car engine caught fire, there was fortunately an extinguisher close at hand, so the only damage was to the car engine - approx £4000.

Q1: Should he disclose that "motor insurance" claim when proposing?

Q2: Should he not disclose it, and a second incident of that same type occurred - might the Insurer decide it was a "material fact" that should have been disclosed?

Yes - is my answer to both questions - would anyone differ?

raskazz

*MF* wrote: »

More than happy to PM you details of my experience - I hope you might accept it is sufficient. without me so doing - but your call and subject to it remaining entirely private.

Let me pose these two questions (it is based on a real case):

The person proposing for buildings and contents lives in a house with an integral garage - last year his car engine caught fire, there was fortunately an extinguisher close at hand, so the only damage was to the car engine - approx £4000.

Q1: Should he disclose that "motor insurance" claim when proposing?

Q2: Should he not disclose it, and a second incident of that same type occurred - might the Insurer decide it was a "material fact" that should have been disclosed?

Yes - is my answer to both questions - would anyone differ?

I wouldn't differ as such but would add that the traditional doctrine of utmost good faith has to an extent been modified by FSA rules - predominantly the rule that unless there is evidence of fraud, an insurer cannot avoid a claim from a retail customer on the grounds of non-disclosure where the proposer could not reasonably be expected to have disclosed the material fact or facts. Thus, the wording of the question relating to claims or losses that is asked at quotation and inception is crucial and each case would be taken on its own merits. I'm not sure that this has been acknowledged thus far in this thread.

Insco

I agree with Clear Blu.

Flame and MF - have a look at ICOBS 8.1 of the FSA Handbook;

Rejection of a consumer policyholders claim is unreasonable if it is for non disclosure of a fact MATERIAL TO THE RISK which the policyholder could not reasonably be expected to have disclosed or non negligent misrepresentation of a fact MATERIAL TO THE RISK.