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Making a Claim on Your Insurance

What do you think about when you are deciding whether to make a claim on your home contents insurance? How much you can get and whether you can claim more than the excess is probably about the extent of your thinking.

But there is something else you need to think about and it involves a hidden rule that could affect your ability to obtain insurance cover in the future.

Think: have you made any other home insurance claims in the last three years?

If you claim more than twice in three years, most insurers will consider you a high risk because your rate of claims is unusual. When you apply for a quote to a new insurer, if you divulge that you have made three or more claims in the last three years, most of them will decline to quote.

And when your current renewal comes around you will be horrified at the hike in your premium. If any of your claims were for small amounts, they could be completely negated by the price you now have to pay.

Suppose your house was burgled in year one and you made a claim. Then in year two a storm damaged your garden shed, which was also covered by your policy. Although it did not cost that much to repair, you decided to claim again. Then the burglars returned so you made another claim.

This could be expensive in more ways than one. Do remember this hidden rule and think before you make a smaller claim: you never know what might be round the corner.

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