Home Insurance - 5 yr refund!! 6 June 2022 at 9:59AM in Insurance & life assurance 3 replies 122 views

ElPolioLoco

I have some trouble with my Home Insurance following my reporting of a sinkhole in my garden patio.

i reported discovery of a void beneath my garden patio to my insurer to investigate. my concern was that the void would or could affect my home and require remedial action. so far the insurers surveys and my own private surveys have indicated this is just a result of poor installation of patio with rubbish foundations by the previous homeowner.

when the insurers investigator came out, rather than focus on the issue i reported, decided to photograph much of the exterior of the home and later i found out why. they were seeking to void my insurance on the basis of a 'crack' on the exterior of my property. the 'crack' they were referring to was to a render under a window that was the result of historic settling. this was identified and confirmed in my home-buyers survey when i purchased the home.

the insurer are saying that i did not inform them of this 'crack' stating that i answered a question incorrectly. the question being 'are there any cracks on the exterior of the property'. as this was an old crack i did not report it. if it was new i would have reported it. they acknowledge i did 

the insurer has therefore voided my insurance and is seeking to refund me 'ab inito' for 5 yrs worth of insurance. 

my query is why would they do this? by refunding me 5 yrs worth of payments what are they potentially avoiding? should i accept the refund?

user1977

"Ab initio" means the contract wasn't valid from the very start - in which case they can't keep your premiums because they're saying they weren't actually providing you with any valid insurance for that period.

Are they actually asking you to do anything to "accept" the refund?

ElPolioLoco

they are just asking for my bank details to return monies to. just smells fishy that an insurance company would do this. i was expecting at most that they would refund current year premiums. giving me back 5 yrs worth just feels like i am missing something.

dunstonh

when the insurers investigator came out, rather than focus on the issue i reported, decided to photograph much of the exterior of the home and later i found out why. they were seeking to void my insurance on the basis of a 'crack' on the exterior of my property. the 'crack' they were referring to was to a render under a window that was the result of historic settling. this was identified and confirmed in my home-buyers survey when i purchased the home.

When you say home-buyers survey was that a home buyers report (usually rubbish and not worth the paper written on) or a survey (usually about 20-30 pages of the status of the buildings and issues, with photographs and often how to resolve issues)?

When you purchased the insurance, did you give the insurer a copy of the survey?

As the crack was mentioned, did you declare it to the insurers (assuming you didn't give them a copy of the survey)?

 (assuming no to the above given your later comments)

the insurer are saying that i did not inform them of this 'crack' stating that i answered a question incorrectly. the question being 'are there any cracks on the exterior of the property'. as this was an old crack i did not report it. if it was new i would have reported it. they acknowledge i did 

You should always answer the questions as they are asked.  Do not insert words into the question to change the question.  i.e. in your case:  are there any cracks on the exterior of the property that are not old cracks.

They asked are there any cracks on the exterior of the property and you should have told them. 

the insurer has therefore voided my insurance and is seeking to refund me 'ab inito' for 5 yrs worth of insurance.

That is lucky.   They could have classed it as intentional non-disclosure and the rules on that allow them to retain the premiums.   They have chosen to class it as accidental non-disclosure and that means they would pay out on a claim if they would have covered the property in the first place (minus any increase cost in premiums) or if they wouldn't  have offered cover then they will refund premiums from the point they would no longer have covered you.  i.e. inception.

my query is why would they do this? by refunding me 5 yrs worth of payments what are they potentially avoiding? should i accept the refund?

Because that is what the long-established guidelines on non-disclosure require them to do.

just smells fishy that an insurance company would do this.

Following published guidelines is not fishy.