Your Insurance is invalid WHY?

If you are paying for insurance, you want to make sure you get the most out of it.

If you are paying for insurance, you want to make sure you get the most out of it in the event of having to make a claim.

Insurance companies are good at resisting claims if they think a policyholder has broken the terms of any policy agreement, so read the small print and make sure you understand exactly what the policy covers and what it doesn’t.

Next, now you understand the policy wording, you have to make sure you stay inside the rules so the insurance company can’t invalidate your insurance.

Insurance companies can invalidate policies – which means they won’t pay out in the event of a claim – in lots of ways:

Failing to disclose material information

Material information is some detail that would affect the insurance company’s decision about covering you as a risk.

You can fail to disclose material facts by omission – just forgetting to say – or by lying.

For instance, if you forgot to tell a company offering life or health insurance about a pre-existing medical condition, this could be a reason for refusing to pay out.

Obtaining insurance by lying because you know you would not get cover otherwise or knowingly making a false claim are both fraud. Fraud is a serious criminal offence that is punishable by a fine and/or imprisonment.

Break-ins

Insurance companies routinely turn down burglary claims for several reasons:

Door or window locks on a property don’t meet the policy specification
A break-in is not reported to the police and has no crime number
Garden furniture and tools are left out instead of being kept securely in a shed or garage
Tools that can be used to break in to the house, like ladders, are left outside
A property is left unoccupied for more than 30 consecutive days
Burglars enter the property through unlocked doors or windows

Car insurance

Failing to tell your insurance company about seemingly insignificant details can lead to an insurance company voiding car insurance. For example, not telling them about:

Changing a job or even a change in a job title
An increase in the number of miles driven
Moving house
Points on a driving licence for a traffic offence conviction
Having an accident, even only a minor knock

Home Improvements

Always tell your insurer before builders move in. Their work can make your property less secure if doors or windows are changed or they could cause damage that could be uninsured.

Failing to take responsibility for your own health and property

More and more insurance companies are looking to get-out clauses in their policies to avoid or reduce payouts.

For instance, if you have health insurance and don’t look after yourself by contributing to a condition you claim for by drinking, smoking or eating excessively, you could void your life or critical illness cover.

Keep cars, boilers and electrical equipment properly serviced, regularly checked for faults and in good repair so you cannot be claimed for contributing towards accidents or damage caused by them malfunctioning.