House buildings & contents - enquiry raises renewal premium

Dangermac

PcRepairman wrote: »

I can understand assessing risk based on known facts (you live on a flood plain therefore you are more likely to be flooded) but risks based on pure speculation (you've had an accident therefore you are more likely to have another??) do not hold water (no pun intended) in my book.

I see where you are coming from, but it's a difficult one.

As an extreme example, if someone's house had been broken into 5 times (but no claim made), would you not agree that this makes that house a higher risk than a house with no such record?

I think that the problem now is one of central databases, where claims/losses are recorded on central database for 'Fraud Prevention' purposes. In the past, casual reporting would probably have never come to light if not disclosed to a new insurer. Not so these days.

In the end, the public generally have asked for cheaper/slicker/efficient/non-advised insurance, which has meant that systems now often overrule common sense.

DM

*Scarlett

Many companies will ask about accidents or losses whether or not they resulted in a claim.So if you broke a teacup last monday I would not mention it even as a joke as insurers tend not to have a sense of humour!

Incidents not claimed for that they would normally need to know about would be burglary claims, liability, malicious damage. (Flooding or subsidence would usually be covered by other questions the insurer has asked).

Some companies will reduce your ncd just for enquring but many will just record it as a loss.

OP have you had any other claims enquiries within the last 3 - 5 years that would cause this one to be flagged up?

InsideInsurance

*Scarlett wrote: »

Some companies will reduce your ncd just for enquring but many will just record it as a loss.

They would struggle to justify that given that its a "no claims discount" not a "no incident discount".

Of cause making a claim and then withdrawing it after the insurer has already inspected the damage etc is likely to impact the NCD as the insurer has incurred cost.