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A claim raises your premiums by how much?

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A claim raises your premiums by how much?

edited 4 September 2018 at 2:20PM in Insurance & Life Assurance
3 replies 557 views
travelodgertravelodger Forumite
129 posts
edited 4 September 2018 at 2:20PM in Insurance & Life Assurance
Never made any insurance claim before and need savvy advice.


Due to a leak in a CH pipe part of a lath and plaster ceiling underneath collapsed, and needs repair.


Darned insurer tells me there is a £500 excess. Hmph!


I've had two quotes in. (1) from a sole trader, for £500 and (2) from a big building firm, for £1,000.


Both firms have good reviews on Checkatrade. It's tempting to think that the £1,000 firm will do a far better job because of how much they are charging, but maybe it's to pay for the signwritten vans, embroidered polo shirts, slick stationery and paid receptionists, and most of all, VAT.


Should I pay the first builder myself, or should I make an insurance claim, pay the £500 excess and claim the other £500 from the insurer?


A friend said it's better not to make a claim, as they will increase my premiums next year. So I spoke to the insurer and they refuse to say by how much my premiums may rise -- not even the roughest, "ball park" figure.


Any advice from more savvy people gratefully received.


Travelodger.

Replies

  • lisyloolisyloo Forumite
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    Your premium can be loaded twice if you make a claim.
    Firstly because you have fewer claim free years and secondly because you've experienced an issue you are more likely (apparently) to experience one in future.


    If you don't make a claim you will not experience the first but you will experience the latter having already spoke to your insurer about you loss. (the first only applies to claims, the second to any loss whether claimed or not).


    If you want to see how much your insurance rises then you can do dummy quotes both with and without the claim/loss to see the difference however I'd recommend using a false name and possibly different house number (in the same postcode) as sometimes these things get picked up as fraud.


    I'd probably go for paying the sole trader and not claiming via insurance myself.
  • kingstreetkingstreet Forumite
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    Darned insurer tells me there is a £500 excess. Hmph!
    No policy documentation to study? What exactly did you tell them to glean this information?

    Did you choose this level of excess to lower your premiums?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • SystemSystem
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    lisyloo wrote: »
    I'd recommend using a false name and possibly different house number (in the same postcode) as sometimes these things get picked up as fraud.


    .


    What happens when someone who does live at that house number tries to get insurance? Is his premium going to be loaded because the house appears to have had this trouble? Is he going to be caught for apparently trying to get insurance under a false name?
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