Do previous claims affect my home insurance premiums?

Key takeaways

• You’ll be asked about any previous claims when you apply for home insurance – it’s important to answer this question honestly

• Past home insurance claims could mean paying more for cover, as insurers will view you as higher risk

• Home insurance claims stay on the Claims & Underwriting Exchange (CUE) database for six years

• Policyholders should weigh up the costs and potential premium increases before making a home insurance claim

How do different types of claims affect your home insurance premiums?

Not all previous claims will have the same impact on your future home insurance premiums.

A small, isolated claim may not significantly affect your premiums. But larger or multiple claims can set off alarm bells for insurers, leading to a steeper increase in your future costs.

The type of claim matters too. Claims for flooding, for example, are likely to mean paying higher premiums in the future. But small claims for accidental damage will have less of an impact.

Finding the right cover with previous claims

If your claims history means you are struggling to find affordable home insurance, there are specialist insurers that offer policies to people in “non-standard” situations.

This could include owners of homes affected by subsidence or flooding, as well as those keen to take in lodgers. These insurers look at home insurance applications on a case by case basis.

How can I find the right home insurance cover with previous claims?

You can find the right home insurance cover if you have previous claims by shopping around for cover.

Start by comparing quotes from a range of insurers, as some are more flexible than others when it comes to claims history. Be honest and accurate about past claims – failing to disclose them could invalidate your policy.

Increasing your voluntary excess may reduce premiums, though you’ll pay more if you need to claim. Taking steps to reduce risk – such as improving home security or addressing issues like damp or leaks – can also make you more attractive to insurers.

If your claims history means you are struggling to find affordable home insurance, there are specialist insurers that offer policies to people in “non-standard” situations.

This could include owners of homes who have previously made claims for subsidence or flooding. These insurers look at home insurance applications on a case by case basis.

If you’re struggling to find cover, a broker can help match you with suitable providers.

Will a claim on my home insurance impact future premiums?

Yes, if you have made a previous claim on your home insurance, your premiums are likely to rise in the future.

How much your costs will rise by depends on the:

• type of claim

• size of claim

• number of claims

An isolated incident may result in a modest premium increase, while multiple claims for issues such as flooding can lead to larger premium hikes.

Why do I need to declare previous claims?

You need to declare previous claims because insurers use this information to assess risk and decide how much to charge for your cover. Your claims history helps them understand how likely you are to make another claim in the future.

Failure to disclose this information when asked during the application process is known as “non-disclosure” and can invalidate your policy. An invalid policy will mean claims could be rejected and you will be left without cover.

Do home insurers share claims history?

Yes, home insurance providers share claims history. They do this by reporting claims to the Claims & Underwriting Exchange (CUE).

Insurers can check this database to verify the claims you've reported – so they will probably find out if you have lied about your claims history.

If you want to know what information is held about you, you can ask your existing insurer for details of your claims history over the past few years (even if you have switched insurance providers during that time).

How long do claims stay on CUE?

Home insurance claims stay on the CUE database for six years after they are closed. This time period ensures that insurers have a comprehensive view of your claims history when assessing your potential risk.

Will no-fault claims impact my home insurance premiums?

Yes, no-fault claims can affect your home insurance premiums. Insurers may still increase your premiums after no-fault claims because the claim indicates a higher risk of future incidents.

Will a flood affect my insurance costs?

Yes, a home insurance claim for flooding will affect your future home insurance premiums.

If your property is built on a flood plain, then there is a higher likelihood of it flooding again in the future. This means your home represents a bigger risk to the insurer.

How can I buy home insurance after a flood claim?

It’s still possible to get home insurance after a flood claim, but you will usually need to pay more for cover. The key is to understand that insurers see previous flooding as a higher risk, so it can affect both availability and price.

To keep costs down, it's essential to compare policies and shop around. This can help you find the best policy at the best premium.

The Government’s Flood Re scheme can help homeowners find affordable home insurance after a flood. Every insurer that offers home insurance in the UK must pay into the Flood Re scheme. Flood Re works with insurers behind the scenes. When you buy home insurance cover, if the cost of the flood risk part of your policy is considered above a certain level, the insurer may place that part of the policy with Flood Re.

Additionally, taking proactive measures such as installing flood prevention systems and raising electrical fixtures can also lower premiums.

How can I keep home insurance costs down after a burglary?

After a burglary claim, home insurance premiums may rise, but improving your home security – such as installing approved locks, an alarm or smart security devices – can reassure insurers and help keep costs down.

Many insurers will award you discounts of 5% or more if you can prove your home is more secure.

Make sure you shop around and compare policies – opting to pay a higher excess may be another way to find cheaper premiums.

Can I get home insurance with a history of previous claims?

Yes, you should still be able to find home insurance if you have a claims history – but it is likely to be more expensive.

By shopping around and using a price comparison website, you can find the right policy for your circumstances.

Should I claim on my home insurance?

In some cases, it may not be worth making small claims on your home insurance.

All home insurance policies will come with an excess – this is the amount the policyholder needs to pay towards any claim. If your excess is more than the claim amount, it’s not worth making a claim.

Even if your claim is above the excess amount, you should think twice about making a claim as it will be likely to cause a rise to your future premiums. Sometimes paying for repairs out of your own pocket can be more economical than claiming on your insurance.