Home insurance cancelled due to undeclared claim which was rejected

njain1967

Made a claim on house insurance in early Dec-2024. Was rejected by end of Dec-2024. Got a new home insurance policy in Jan-2025 where I did not declare this as I did not realise that even rejected claims had to be declared. Got a letter from new insurance company when they found out, and hence I told them in early Mar-2025 that yes it was a claim, but it was rejected. Now the underwriter has cancelled the policy. Few questions:
1. Do we now need to keep declaring that we have had insurance cancelled?
2. If the claim was rejected, how can we get it removed from our record?

Current insurance broker is able to offer a new policy, but it is at double the premium.

DullGreyGuy

njain1967 said:

Made a claim on house insurance in early Dec-2024. Was rejected by end of Dec-2024. Got a new home insurance policy in Jan-2025 where I did not declare this as I did not realise that even rejected claims had to be declared. Got a letter from new insurance company when they found out, and hence I told them in early Mar-2025 that yes it was a claim, but it was rejected. Now the underwriter has cancelled the policy. Few questions:
1. Do we now need to keep declaring that we have had insurance cancelled?
2. If the claim was rejected, how can we get it removed from our record?

Current insurance broker is able to offer a new policy, but it is at double the premium.

Insurers ask if you have had any incidents irrespective of if it was claimed for and irrespective of whose fault it was. So even if you didnt think you had to declare it as a claim, why was it not an incident you had to declare?

1) Yes, most insurers ask if you've ever had insurance cancelled. A small minority put a time limit on it

2) You can't, you made a claim and it was declined. It's likely a moot point anyway because in most circumstances it would still be an incident that needs to be declared; obviously depends on the finer details. 

Double is a good result for having to declare a policy voided for non-disclosure, many more on here report triple or higher.

supportandhelp

How long does something like this have an impact on premiums?  we have had something like this happen too. It is frustrating because we did not get anything from the claim (which is fine) they came to assess that was it... so don't understand why it is a claim 

DullGreyGuy

supportandhelp said:

How long does something like this have an impact on premiums?  we have had something like this happen too. It is frustrating because we did not get anything from the claim (which is fine) they came to assess that was it... so don't understand why it is a claim 

You simply must answer the questions honestly, most ask if you have every had insurance cancelled or void in which case forever more you will have to tell them yes. Some that will be the end of the line, particularly online, others will ask further questions, potentially over the phone. A few insurers as about the last 5 or 10 years. 

Its a claim because a claim file was opened, it remains a claim irrespective of the reason for closing is payout, define or withdrawn. Insurers may well incur costs when dealing with a claim even if its declined... at the basic many software solutions charge a per claim file fee, many use outside loss adjustors who typically get 50% of the fee on a declined claim. 

As mentioned previously though, most insurers dont just ask about claims but ask about incidents/losses too

comeandgo

supportandhelp said:

How long does something like this have an impact on premiums?  we have had something like this happen too. It is frustrating because we did not get anything from the claim (which is fine) they came to assess that was it... so don't understand why it is a claim 

I always mention it as to not and they find out you have had a cancelled policy then that too could lead to another cancellation.  I have not noticed any increase in my policies though I was a named driver on my daughters car and it did put her premiums up when she mentioned it.