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In fact one in five home insurance claims in the UK are rejected according to the latest statistics from the Association of British Insurers (ABI).1 Insurance policies can be quite complex and often homeowners can be confused by what is covered and what isn’t on their home insurance policy.
According to ABI, one of the main reasons for a claim to be rejected home insurance is damage caused by wear and tear or the lack of general household maintenance2. Home insurance does not cover householders for general deterioration or weathering of their home, that’s why it’s so important for homeowners to maintain the upkeep and have a regular maintenance routine to ensure that they are always properly protected.
The average domestic home insurance claim in the UK is currently at £3,8233. That is quite a substantial sum of money if you have to foot that bill yourself if your claim is rejected. It would be even more gut-wrenching if damage caused could have been prevented by staying on top of some simple home repairs and maintenance.
We understand how daunting and time consuming it is to fit home maintenance into everyday life. When there are so many other things on the to do list, those home maintenance chores can be ignored.
We often see these small jobs escalate over the years, and what would have been a low cost, simple repair initially, becomes a timely and expensive problem. And when it comes to claiming on your home insurance, if you haven’t stayed on top of those jobs, you could find your claim being rejected – leaving you even more out of pocket.
We understand that time is a precious commodity, with juggling work, home life as well as children, for many of us DIY, whether it’s checking the roof tiles, clearing the gutters or simply fixing that wobbly fence, can be the last thing you want to do in your spare time. Whilst we are a nation of DIY enthusiasts, a recent study4 found that home maintenance tasks are only a priority for one in four homeowners and renters. The survey also discovered that one in three of us put off doing home maintenance tasks due to concerns about not having the right skills.
What are the main reasons for a rejected home insurance claim?
A claim on home insurance will be assessed by the insurance assessor. They will consider all factors, but it is a condition of the policy that the homeowner will take reasonable care of their property. If the assessment proves that damage could have been prevented had the home been reasonably maintained, the claim could be rejected.
Will your home insurance premium increase if you make a claim?
Recent research shows that on average, making one claim on your home insurance can result in a staggering 57% increase in premiums and it can take up to five years for the premium to reset!6
An insurance premium increase is also likely if you make a claim, but the claim is rejected. And even a phone call to your insurer to see if you are covered for an incident can see a hike in your premiums. Insurance premiums are based on the risk of a claim, so even if you don’t make a claim, an incident log increases the risk for a claim and the insurer prices in this risk factor.
Start your own free preventive maintenance plan. Click or scan to install. Each plan has been designed by experts and is tailored to your home by Planna.
Article sources
- https://www.abi.org.uk/data-and-resources/industry-data/claims-acceptance-rates/
- https://www.bbc.co.uk/news/business-35401104#:~:text=More than one in five,fail to receive a payout.
- https://www.morganclark.co.uk/about-us/blog/uk-home-insurance-claim-statistics/
- https://www.insightdiy.co.uk/news/brits-dont-get-the-hang-of-basic-home-repairs-until-age-31/9075.htm
- https://www.morganclark.co.uk/about-us/blog/uk-house-fire-statistics/
https://www.thisismoney.co.uk/money/bills/article-10390049/Home-insurance-One-claim-five-years-makes-premiums-57-pricier.html