Is this fraud

[summertimeishere]

So...friends of mine had a burglary and claimed on their insurance. Their insurance is now up and due for renewal. They are panicking that they forgot to notify the insurance company of an extension they had a couple of years ago in case it voids their claim. Extension was to a different part of their home and not where breakin occurred. I thought I'd ask the wise people of MN if it will void their claim if they now let insurance company know (extension predates burglary). Namechanged as when I show them thread, I don't want them to see other stuff I've posted!

I'm no expert, but the only way I see the extension voiding the insurance is if they declared a certain level of security on their doors and windows, and the conservatory ones don't meet this level. Unlikely though as all new extensions should have a pretty decent level of security.

It's definitely not fraud, but if the house security now doesn't meet the level they declared that could potentially void the insurance.

If they benefit financially from misrepresenting or omitting that which is relevant they know is dishonest, then there would be grounds for an argument of fraud surely. Whether anyone will ever find out or oy go anywhere is a separate matter and down to their own conscience or opinion I suppose.

I should imagine it is possible that their policy was void since they didn't appraise the insurer of changes to the property but again, that entirely depends on their T&C's. Are the entry points in the extension of a lesser security than the declared ones? Can they prove where entry was made? Have the police recorded this etc. I assume they'll want a crime number if so and can check themselves.

If they have a mortgage and didn't appraise the lender of the extension plans they probably broke their mortgage terms too, incidentally. These things are a pain!

Entrance was front door and extension was a loft conversion. I don't know whether mortgage company know or not. Their insurance just automatically renews and they say it was an oversight. The burglary happened at night, they were awake in bed and called police. The burglars didn't even make it upstairs, just grabbed what they could. I don't know if they were ever caught, but I do know that their car was later recovered. Friends now want to ensure cover is updated but are frightened to do this as they have spent the insurance money replacing some stolen items.

They could just switch to a new company

You’re supposed to tell your insurance company that you’re having work done for starters!

If the value has increased, the insurance company need to know for rebuild costs. Surely the T’s & C’s tell them they have an obligation to tell the insurer of any changes to the building, to protect both parties?
The onus was on the homeowner to tell the truth - if details are missing the insurance company are within their rights to not pay out because information is missing.

If there was a payout, I think all details will be listed and transferred over to the new insurance company.

‘A friend’ hey...

Our insurance company were only interested if it changed the number of bedrooms. Ours was a kitchen extension so it didn't. They might be in trouble if it was a loft extension.

Just thinking....lift extension would have to meet considerable fire regs....

I was super impressed I put in a claim for expensive lost jewelery with First Direct last year. I was imagining the very worst of investigations and intrusive questions and them weasling out of paying. They were exceptional to work with with minimal digging etc. That said it was our first ever claim in about 15 years of having home insurance.

Wouldn't the burglary claim come under contents insurance, and the extension under buildings insurance? Or is it lumped into one insurance policy?

They'll have to tell the insurance company about the extension. If the insurers ask for the date the extension was done then I suppose there's a risk they'll say that previous policies were void and try to reclaim the payout for the burglary. I doubt it would be considered as 'fraud' though.

I'd be more concerned about the house being underinsured for buildings insurance so would definitely bite the bullet and tell the insurers about the extension.

@SmiteTheeWithThunderbolts - I asked them the same thing. It's all with same insurer apparently.