Home Insurance - Void From Inception

matt83uk

Yes Im stupid..

I had a home insurance building&content policy due for renewal at end of month. Start shopping around and found Sheila's wheels for something daft like half price I was paying.

Signed up online and struggled to remember when claimed, in past three years I've lost house keys twice apparently, anyways searched the net for key loss and things seem to indicate it was "building" rather than "content", and then came up with a rough date. I forgot I'd claim twice only only declared one to Shelia, I didn't know the cost or even if I had to delcare key loss, but went ahead a said feb this year and £150. As it turns out I've had two claims one in 2006 and one late 2007 for key loss (none in 2008) - £110 and £150 repsectively and both fall on Contents, whoops. My bad My stupid fault for not verifying everything - previous insurance didnt send any document about claims so no paperwork (but I accept I should keep own records)...

Anyways Shelia did a check on insurance database and asked me to call, held my hands up and said yep what you've got probably correct - ill accept what you've found and we'll go with that, figure it would increase premium a quid or two.. The underwriter said sorry we only deal with low risk and two claims in 3 years on content was not their coverage and that they would void the policy when the inception date rolled round, all very nice and polite they said deposit would be refunded to my card and to just destory the cover note etc.. ...

Now getting other quotes, now I have accurate information matching the database, do I have to delcare a policy that was voided before it even started (end of month)??? Is that recorded on the database too? What will they say given the £110 discrependency that I made with Shelia... ? Will it be a big black mark as if I've not declare a major claim?

Oscar_The_Grouch

Hi there

Any policy declared "void" has to be disclosed to your new insurer. If you fail to do so and they find out at a later date, they will consider that to be deliberate non-disclosure and you will be in big trouble.

ben500

A classic example of why providing full disclosure when requesting a quote is so important, to be honest you got off lucky here, had this not been picked up by the insurers now and the check done in the future at the time of a claim the effect could have been devastating for you. I'd make a call to your current insurers and ask the question, are there any details of my policy I need to inform another insurer about? This should provide you with all critical detail and avoid a similar problem.

However the recent non disclosure and subsequent voiding of the policy may well have it's own implications for you as some insurers may refuse cover or the premiums be loaded to account for the perceived increased risk.

As Oscar says any voided policy or in most cases even refusal of cover must be notified, if not then you run the risk of it being discovered at a later date and the new policy being voided also for non disclosure, it is also wise to bear in mind that not all insurance companies will check {CLUE} claims underwriting exchange prior to issuing the policy, what this means is they could take on the cover on the basis of the information provided in good faith, if later on you make a claim then the likelyhood of the check being made at that time is very high, this would result in a repudiated claim and the voiding of the policy at a time when you may have ceilings collapsing or a hole in the roof.

Rightly or wrongly some insurers will take the view that the non disclosure was or could have been deliberate to reduce premium and will factor this in to any premium quoted or decision on offering cover.