Home Building Insurance Claim

Hound_dog

Hi all, can anyone advise please.  We've just discovered that there could be a mains water leak on our property - yet to be confirmed. Engineers are investigating next Thursday 16th March. My existing policy expires just before then on 12/03/2023 23:59. I am currently renewing cover with another provider. I'm concerned if we have to make a claim, the new provider won't cover us as the 'damage' happened prior to the policy start.  I have contacted the current provider (email only can't phone them!) and waiting a response.  Do any forum members have any similar experience?

thanks

TELLIT01

Bite the bullet and renew with the existing insurer to avoid conflict.  Only do that after checking that an external water leak is covered under your existing policy.

Smithcom

Hound_dog said:

Hi all, can anyone advise please.  We've just discovered that there could be a mains water leak on our property - yet to be confirmed. Engineers are investigating next Thursday 16th March. My existing policy expires just before then on 12/03/2023 23:59. I am currently renewing cover with another provider. I'm concerned if we have to make a claim, the new provider won't cover us as the 'damage' happened prior to the policy start.  I have contacted the current provider (email only can't phone them!) and waiting a response.  Do any forum members have any similar experience?

thanks

This sounds like a live/ongong issue

Household Insurance covers damage caused during the period of insurance

The previous insurer will be liable for damage which has been sustained during their policy period.

The new insurer will be liable for damage caused during their policy period.

Presumably, the ongoing claim has been declared to the new insurer (claims/losses).  You will need to check that they will be happy to deal with their share of the damage (which would be exceptionally generous). 

Personally, I think that it is pretty unusual/crazy to be changing insurers bang in the middle of an ongoing event, but providing  that the new insurer are aware of the claims/loss and have confirmed that they are happy to also get involved, why not.   Oh, you will need to consider:

1. You will need to declare 2 x claims (one for each policy)
2.  2 x insurers to deal with
3. 2 x Loss Adjusters to deal with
4.  2 x policy excess to pay
5.  Confusion and argument about which policy will pay for what damage

Personally, I would concentrate in resolving this matter and look to change insurers next year.

Good luck!!!

SC

DullGreyGuy

You would claim off the policy in force at the time the event happened that caused the losses to occur. So you claim off your old policy and declare it as a historic claim on your new policy. 

Smithcom

DullGreyGuy said:

You would claim off the policy in force at the time the event happened that caused the losses to occur. So you claim off your old policy and declare it as a historic claim on your new policy. 

......providing that the actual damage is caused during the policy period.

If the damage is ongoing (which it appears to be), the current policy will cover damage caused during that policy period.   If the damage continues to be caused during another policy period with another insurer, the prior insurer will only cover damage caused up until renewal date.

There are various FOS (Financial Ombudsman Service) decisions re similar types of incidents, albeit the FOS don't necessarily strictly follow policy terms and conditions. but more look at the fairness/intention of the policy wording.

In the insurance industry, we have market arrangements for certain events (like subsidence) which may (and are likely to) span various policy periods.   This pulls previous insurers into claims where damage has partly been caused in a previous policy period.

You are correct that the claim will need to be disclosed to the new insurer, but it doesn't stop there.  There is actually potential that the new insurer would need to get involved in the claim, given that the damage seemingly remains current and ongoing.

For the OP to move to a new insurer, they would need to ensure they (new insurer) are aware of the claim/loss (disclosure as per questions asked and in line with CIDRA) and have confirmed that they are happy to also get involved in the claim.

Probably not a good time to move insurer.....in my view

SC