Honesty is the best policy with insurance

Honesty is the best policy when dealing with your insurance company otherwise you could lose out when you make a claim.

Somewhere in the policy small print is a warning that says you must disclose any information that might affect the terms of the policy.

If you don’t, at worst, you may find the police knocking on the door to discuss a fraudulent claim while at best, the insurance company will refuse to pay out.

Most people have several types of insurance – for their homes, possessions, cars and pets, for example.

To make sure you are covered, read the policy small print and if in doubt, call your insurance company and discuss your circumstances.

Home insurance

Homeowners have buildings insurance that covers events like storm damage, flooding and subsidence.

Many homeowners and tenants also have contents cover that protects loss or damage to personal possessions like the TV, carpets and furniture.

Every year, many have to pay out of their own pockets for a break-in or damaged property despite having paid for home insurance.

The insurance companies cleverly write policies in their favour policyholders can invalidate their cover unwittingly.

Bringing in builders without notifying an insurer can invalidate building and contents insurance and any claim refused.

• Some policyholders failed to tell their insurers about work on their homes and have had claims refused for water damage while builders were replacing roof tiles and rain poured in during a storm.

• On the other hand, DIYers have damaged their homes by knocking out retaining walls or dropping hammers in the bath and had claims refused because their policies stipulate that competent, professional builders must complete certain work, like structural alterations.

• Some building work, like changing doors and windows may lead to an extra premium if your insurer feels the risk of a break-in is increased by the work.

Many insured homeowners have burglary claims turned down because they have invalidated their policies:

• Failing to make sure door and window locks fitted to the house meet the minimum policy requirements

• New doors or windows are fitted and the insurer is not update

• Police are not told about a burglary so no crime number is assigned to the case

• Items are left out in the garden without little or no security, like garden furniture, tools and bicycles in the open or unlocked sheds.

• A home is left unoccupied for more than 30 consecutive days

• Doors or windows are left unlocked allowing a break-in

Another common problem with home insurance is inflating the claim of repairs or stolen goods. As soon as you put in a claim form that is misleading, you are attempting a fraud, which is a serious crime.

Drivers

Motor insurance is a minefield – some drivers mislead or ‘forget’ to mention driving offences or accidents to try and keep their premiums down and others unwittingly void their insurance by just failing to tell their insurer about changes in their lives:-

• Drivers who don’t tell their insurers about driving convictions or accidents may find their car insurance is invalid.

• Moving home instantly invalidates any insurance policy. When you move, tell your insurance company straight away and ask for a new quote.

• Changing your job can sometimes invalidate your policy as well – for instance you new job might incur some business use of your car which is not covered by your existing policy.

• Letting someone not named on your policy drive your car because your insurance does not cover them.

• Letting your MoT expire and failing to maintain your vehicle to legal standards, for example, driving with worn out tyres will also invalidate your car insurance.

Pets

Overfeeding or neglecting your cat or dog could invalidate your pet insurance if you claim for a condition related to the way you care for your pet

Summary

• Always read your insurance policy small print – and if in doubt, talk to your insurance company

• Don’t mislead or omit information to try and get a cheaper premium or inflate a claim.