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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

WTF? What is the point of home insurance if you are penalised for making a claim?

74 replies

codswallopandbalderdash · 25/03/2018 16:17

OK. I am in major rant mode. After 10 years of not making a home insurance claim, we've had a bad year - a stolen mobile phone (got £150 on insurance) and building damage from all the sodding snow earlier this month - claimed £500.

So my current home insurance company has doubled my premium for next year so I've started shopping around. Guess what? Four phone calls later and four companies refusing to insure us. Apparently it makes not a jot of difference that we claimed less than £1,000 - I was told it would have been better for us had we had one big claim!

By the end of the last phone call I was sighing and muttering what is the point of having insurance if you are penalised for making claims. I am pretty appalled that this is the way the industry operates and there is stuff all I can do about it. I have paid thousands of pounds in insurance over the years ...

Anyway, I just wanted to let others know how bloody home insurance works - try not to claim and if you do make sure it is for a large amount because you are going to be penalised.

OP posts:
YorkieDorkie · 25/03/2018 16:18

Ugh that's so shitty 🙁 thanks for the heads up.

mynamesjohnnyutah · 25/03/2018 16:22

Well because if something happened and you had to replace ALL your belongings it would be worth it. I wouldn’t claim for anything under about £2k, it’s not worth what it does to your premiums.

DairyisClosed · 25/03/2018 16:23

How have you managed to get to this point with understanding how insurance works? Here's a hint. Insurance is for the big stuff you can't pay for. Don't make a claim if you can help it.

Happygolucky009 · 25/03/2018 16:24

You haven't been penalised for making a claim, you have lost your discount for being claim free. Personally I wouldn't ever make a claim under £1000 because of the effect on future premiums and whether you claim 70p or £70,000 is irrelevant.

KerplunkChampion · 25/03/2018 16:24

How was it worth claiming for only £150 for a phone? What was the excess?

The80sweregreat · 25/03/2018 16:24

It’s all a con. Insurance is only win win for the companies - it’s not tailored for the people.

YellowMakesMeSmile · 25/03/2018 16:28

You've made two claims, of course your premium will go up. You have lost your claim free bonus plus are now a risk as already had two claims.

You used the insurance so can't complain.

PrincessLeia80 · 25/03/2018 16:32

No expert but I always thought with home insurance you are allowed 2 claims before it affects your no claims.

araiwa · 25/03/2018 16:33

Thats how insurance works Confused

Youve had 2 claims in a year, how can you think that it wont be more expensive?

Floralnomad · 25/03/2018 16:34

Agree with other posters insurance is for big things like everything being stolen in a burglary or the house burning down , definitely not worth claiming for things like phones . Our house insurance has gone down this year ( no claims for several years) so at least it’s not a general upwards trend for everybody .

MongerTruffle · 25/03/2018 16:36

Unfortunately this is how insurance works. People who are more likely to claim are charged more.

Pinkprincess1978 · 25/03/2018 16:43

I personally wouldn't use my insurance unless it was for something big. Very recently my husband has split paint all over our carpet. He hasn't got it all up but I don't think it's worth claiming (if he can't get the test up I'm just going to move the rug over 😂)

BrownTurkey · 25/03/2018 16:43

It is annoying isn’t it. We reported a burglary and as one item stolen was over an above the excess we thought about claiming it - it was a sat nav but was stolen from the house, guess what house insurance said it wasn’t covered as it is a car item, car insurance said it wasn’t covered as it was taken from the house. And probably our premiums went up too - just for contacting them. But I guess insurance is for the big stuff. Second burglary we got jewellery vouchers to ‘replace’ an engagement ring - but there was no one item in the shop that came close to the value. Ah well, I ended up with two rings and a watch.

Rachie1973 · 25/03/2018 16:44

S'okay, they voided mine recently. 20 years of paying, 2 small claims. Ball valve broke in the loft and flooded the house. Apparently we should have told them we were going on holiday for 14 days so policy voided. Just like that and a £10k clean up bill for me to sort out.

daisychain01 · 25/03/2018 16:49

Apparently we should have told them we were going on holiday for 14 days so policy voided

That's surprising. Standard for home insurance is the question "will you leave the house unoccupied for 30 days or more", which allows for people going on a standard 2 week holiday.

Have you checked your insurance policy document as it is normally captured in there about leaving the property unoccupied. I'd contest it if I were you.

NotSuchASmugMarriedNow1 · 25/03/2018 16:49

Insurance is a con

The80sweregreat · 25/03/2018 16:50

That’s really tough rachie. I wonder if people know you have to tell them about a fort night break? I bet hardly anyone rings them up for that. I will do now! Sorry for you though - goes to show what a scam a lot of insurance is.

swivelchair · 25/03/2018 16:52

I don't normally bother with home insurance (except when I had a nanny and needed liability insurance), but I claimed on my credit card for my phone when I shut it in the boot door by mistake (it has been my experience that it's cheaper and better to buy a phone outright and get sim-only contracts)

50ShadesOfEarlGrey · 25/03/2018 16:54

Rachie 1973 that’s dreadful. I would look at going to the insurance ombudsman regarding your claim. Going on holiday for two/three weeks is normal behaviour. Did you actually check the paperwork to see the clause in the contract that specified the holiday period?
What good would it have done telling them you were going on holiday, were they going to pop round daily to check all was ok?

BakedBeans47 · 25/03/2018 16:56

We had a burst pipe a few years ago and reported it to the insurance, in the end the damage was less than the excess though so we didn’t actually claim, they do still count it as a claim though which is annoying

FancyABrewOrTwo · 25/03/2018 16:56

Rachie1973 most insurance policies cover the house for being unoccupied for 30 days (occasionally I have seen 60 days) so surprised yours was void for 12.

ShellyBoobs · 25/03/2018 16:56

Insurance is a con

How so? You have the choice not to buy it and all the facts are available before accepting their terms.

But anyway, don't you worry about your house burning down and losing all your belongings without any cover?

It would if it was me.

GoodMorning1 · 25/03/2018 16:57

We would never claim for something like a mobile phone - not worth the premium going up. We once made one big claim.

I would question your policy bring voided for a 14 day holiday. The one v g claim we made, we had to fight tooth and nail to get the money we were entitled to. In the end we threatened the ombudsman and that did the trick.

Gartenzwerg · 25/03/2018 16:57

Rachie1973. That sounds like complete bollocks from your insurers. I’ve never heard of a requirement to inform insurers of a normal 2 week holiday (28 days plus - yes, but not 2 weeks). Does it specifically state this in your Ts and Cs? If not, I would get back to them and threaten them with court action to pay up.

Rachie1973 · 25/03/2018 16:58

daisychain01
That's surprising. Standard for home insurance is the question "will you leave the house unoccupied for 30 days or more", which allows for people going on a standard 2 week holiday

We assumed the same thing. our mistake!

The80sweregreat
That’s really tough rachie

It is, thanks.

50ShadesOfEarlGrey
Rachie 1973 that’s dreadful. I would look at going to the insurance ombudsman regarding your claim

I am. I should have checked more carefully, so I accept some responsibility, however, the damage happened within a 3 hour time frame (my neighbours heard running water and got in, turned the water off) and could have happened at any time. If we'd been asleep or shopping it still could have happened. So will approach with that viewpoint.