Home insurance with previous claims

Key takeaways

• You’ll be asked about any previous claims when you apply for home insurance – it’s important to answer this question honestly

• Past home insurance claims can impact your future cover costs, as insurers will view you as higher risk

• Home insurance claims stay on the Claims & Underwriting Exchange (CUE) database for six years

• Policyholders should weigh up the costs and potential premium increases before making a home insurance claim

Claim types and their effect on premiums

Not all previous claims will have the same impact on your future home insurance premiums.

A small, isolated claim may not significantly affect your premiums. But larger or multiple claims can set off alarm bells for insurers, leading to a steeper increase in your future costs.

The type of claim matters too. Claims for flooding, for example, are likely to mean paying higher premiums in the future. But small claims for accidental damage will have less of an impact.

Finding the right cover with previous claims

If your claims history means you are struggling to find affordable home insurance, there are specialist insurers that offer policies to people in “non-standard” situations.

This could include owners of homes affected by subsidence or flooding, as well as those keen to take in lodgers. These insurers look at home insurance applications on a case by case basis.

The cost increase after a home insurance claim

If you have made a previous claim on your home insurance, your premiums are likely to rise in the future.

How much your costs will rise by depends on the:

• type of claim

• size of claim

• number of claims

An isolated incident may result in a modest premium increase, while multiple claims for issues such as flooding can lead to larger premium hikes.

Why you need to declare previous claims

Honesty is the best policy when it comes to telling insurers about your past claims.

Failure to disclose this information when asked during the application process is known as “non-disclosure” and can invalidate your policy. An invalid policy will mean claims could be rejected and you are left without cover.

Do home insurers share claims history?

Yes, home insurance providers share claims history. They do this by reporting claims to the Claims & Underwriting Exchange (CUE).

Insurers can check this database to verify the claims you've reported – so they will probably find out if you have lied about your claims history.

If you want to know what information is held about you, you can ask your existing insurer for details of your claims history over the past few years (even if you have switched insurance providers during that time).

How long do claims stay on CUE?

Home insurance claims stay on the CUE database for six years after they are closed. This time period ensures that insurers have a comprehensive view of your claims history when assessing your potential risk.

Will no-fault claims impact my insurance premiums?

Yes, no-fault claims can affect your premiums. Insurers may still increase your premiums after no-fault claims because the claim indicates a higher risk of future incidents.

Will a flood affect my insurance costs?

Yes, a home insurance claim for flooding will affect your future home insurance premiums.

If your property is built on a flood plain, then there is a higher likelihood of it flooding again in the future. This means your home represents a bigger risk to the insurer.

How to buy home insurance after a flood claim

Your home insurance is likely to cost more after a flood claim.

To keep costs down, it's essential to compare policies and shop around. This can help you find the best policy at the best premium.

The Government’s Flood Re scheme can help homeowners find affordable home insurance after a flood. Every insurer that offers home insurance in the UK must pay into the Flood Re scheme. Flood Re works with insurers behind the scenes. When you buy home insurance cover, if the cost of the flood risk part of your policy is considered above a certain level, the insurer may place that part of the policy with Flood Re.

Additionally, taking proactive measures such as installing flood prevention systems and raising electrical fixtures can also lower premiums.

How to keep home insurance costs down after a burglary

Unfortunately, making a claim on your home insurance for burglary is likely to mean your premiums will rise in the future.

Make sure you shop around and compare policies – opting to pay a higher excess may be one way to find cheaper premiums.

You should also try to make your home safer by installing additional security features, such as a visible burglar alarm, better door and window locks, or smart security devices such as Ring doorbell or security cameras. Many insurers will award you discounts of 5% or more if you can prove your home is more secure.

Can I get home insurance with a history of previous claims?

Yes, you should still be able to find home insurance if you have a claims history – but it is likely to be more expensive.

By shopping around and using a price comparison website, you can find the right policy for your circumstances.

Should I claim on my home insurance?

In some cases, it may not be worth making small claims on your home insurance.

All home insurance policies will come with an excess – this is the amount the policyholder needs to pay towards any claim. If your excess is more than the claim amount, it’s not worth making a claim.

Even if your claim is above the excess amount, you should think twice about making a claim as it will be likely to cause a rise to your future premiums. Sometimes paying for repairs out of your own pocket can be more economical than claiming on your insurance.