Home Insurance Cover - around switching insurers

BarneyM371

I’m looking for advice on which insurer is responsible when damage starts under one policy but is only discovered after switching providers.

In early March, while still insured with our previous home insurer, we noticed some lifting of our LVT kitchen flooring. We assumed it was an installation issue and asked the flooring company to inspect. When they lifted part of the floor, they found a high moisture reading and suggested there was a leak.

By the time this was confirmed, we had already moved to a new insurer. The new insurer has declined the claim, saying the leak was a pre‑existing issue that began before their cover started.

My question is: can we claim under our previous insurer, given that the damage appears to have occurred during their period of cover, even though the cause was only identified afterwards?

Any insight into how insurers determine the “date of loss” and whether the old insurer remains liable would be appreciated.

MyRealNameToo

There are two ways to write insurance, ignoring a slightly confusing blended one that isnt used much in the UK…

Losses Occurring… the policy in force at the time of the incident that caused the loss is the one that responds

Claims Made… the policy in force at the time the loss is identified is the one that responds.

In some jurisdictions you get claims made policies that become losses occurring if a new policy isnt taken up. Claims Made is most often seen in Professional Indemnity insurance. Almost all consumer insurance is written on a losses occurring basis.

So your new insurers are correct, if the incident that caused the leak is before their policy incepted then you need to claim on the prior policy. The fact its lapsed won't make any difference. Your new insurers will however have to record that there is a prior year claim and adjust the premiums to reflect the change.

The one exception is subsidence which doesnt really occur because of a one off incident and for that there is a special ABI agreement on which insurer deals with it (inc cost sharing at some points)

BarneyM371

https://forums.moneysavingexpert.com/discussion/comment/82006038#Comment_82006038

Thanks, so we can legitimately claim via our old/lapsed insurer?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82006046#Comment_82006046

Absolutely, however they may dispute when the leak started.

Once had a claim a decade after the incident happened, the policyholder had knocked a kid off their bike and hadn't told us as he didnt think there was any injury but when the kid turned 19 he lodged a claim against our insured for his injuries (a minor's 3 year law of limitation starts running from their 18th birthday)