Does house insurance premium depend on how much I claim

justasb

I have a claim for the leak damage I am about to submit and wanted to see if the amount I claim matter on the premium I get.

Would the larger claim affect the insurance premium more?

Thanks

Boggles190

Hi,
No straightforward answer I’m afraid, other than it might.

For motor and home insurance policies, you will nearly always see and increase after a claim as it’s used as a rating factor. The amount claimed might not make a difference but then again it might hit a threshold that means an underwriter reviews it and decides to increase the premium even more. This will usually be depend on other factors, type of claim and previous claims history etc.

It will also depend on the insurer, if they have had a ‘good year’ they may reduce overall rates, masking any increase put on an individual policy.

I would suggest claim as much as you are entitled too, unless it’s a claim that is in the hundreds of pounds range, it’s very unlikely the premium increase will be more than the claim cost. Even if it is you can always shop around at renewal.

justasb

The claim is just over 6000£

Boggles190

Then I would definitely claim as much as you’re entitled to. They would have to be going some to put through a premium increase of £6000!!

FutureGirl

Depends on the insurer. Every insurer has different pricing strategies.

justasb

Would this go down the following year if not claims are made again?

csgohan4

possibly, but again as above depends with insurer, you will have to accept your premiums will be higher over the next few years, much like a car accident on car insurance

lisyloo

justasb wrote: »

Would this go down the following year if not claims are made again?

Probably, but it will probably be higher than if you’ve never made a claim.

Does it matter?
It’s happened, you need to claim so you have to accept that premiums will rise.
It’s probably going to make no difference whether it’s £5500 or £6000, so get what you are entitled to.
You are not meant to ramp it up but there’s not need to make yourself short either morally or contractually.