Claiming on Your Home Insurance

Sooner or later it’s likely that something will happen to your home or possessions.

Sooner or later it’s likely that something will happen to your home or possessions that will lead to you claiming on your home insurance.

When it does, it’s important you know when and how to claim.

Don’t overlook the obvious, like keeping the policy documents in a handy place so you can put your hands on them when you need to.

The insurer should provide you with a claims line number and details of how to claim. Before you claim, do some sums to see if it’s worthwhile.

Paying for the damage yourself may be cheaper

Paying for the repair or replacing the possession yourself may be more cost effective if you have an excess.

If you claim, the odds are the insurer will put up your premiums the following year. A claim might affect your no claims discount, if you have one.

The end result is claiming for a few hundreds pounds worth of damage could cost you just as much as paying to sort out the problem yourself.

If you are unsure how claiming would affect your insurance, then give the company a call and ask them but make sure you make it clear that you are not reporting a claim, just making an inquiry about the best way to proceed.

Accidental damage claims can cause problems. The company will want to know if you have taken reasonable precautions to prevent an accident, like covering carpets when you decorate to stop paint spills.

If the damage can be considered normal wear-and-tear the claim may be refused as well.

Think about car insurance here – you can’t claim for wear and tear on moving parts like the brakes and clutch. Similarly, at home, you can’t claim for the central heating pump breaking down unless you have specific cover.

Making your claim

Claiming insurance is an art – you don’t want to miss out any material facts because the company may try and void your policy, but on the other hand, you don’t want to reveal too much either.

Remember the person taking your call may seem a friendly customer advisor, but the call is taped and they are digging for relevant information with their questions.

Good advice is answering questions like: “Did you put down dustsheets to protect your furniture and carpets while decorating?” with a simple “Yes” or “No” rather than going in to details.

If the company wants to know more, let them ask more questions.

Complaining

If a company declines what you feel is a valid claim, then contact the Financial Ombudsman Service (FOS). You can’t complain to the FOS unless you have tried your insurance company’s complaints procedure first.

The FOS is run by the Financial Services Agency, which is the official regulator of the insurance industry. As such the FOS is independent of funding and interference from insurance companies.

The FOS will investigate your complaint and ask the insurance company for their side of story as well. They will also look at the policy terms and consider a 'fair and reasonable' solution.

The FSO decisions are binding on the company, but you still have the option to go to court if you think the decision is incorrect.