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Special conditions on your policy can lead to insurance being refused

Insurance fraud is not uncommon by any means, and we all know that this crime drives up insurance premiums for those who are honest and genuine. Sometimes though, people have their insurances cancelled because they have lied, either by omission, erroneously or they have done so knowing they are lying but hoping that this will reduce their premiums and they will not get caught.

Those who lie by omission generally do so when buying insurance policies on-line and do not always give sufficient information to enable the insurer to quote on the true circumstances, or they accidentally overlook a tick box or question. When things go wrong, it is very sad – and that is why it well worth using the services of an insurance broker who will ask all the right questions and make certain that the true and accurate facts are recorded.

Failure to give true information not only means that your policy may be declared null and void when you make a claim, you may also have special terms imposed on your future policies – or indeed find it very difficult to get any insurance at all. Sometimes though, you have to hope that common sense prevails as not everyone means to end up in hot water: take for example this tale of a homeowner in the north east of England who found himself unable to find affordable insurance as a result of a mix up with his insurers.

Michael was burgled on the first day of his Christmas Holiday and the haul was large at around £10,000. As a homeowner, Michael was advised by his insurance company that he must have an alarm fitted within three months of the date of the theft, which he felt was perfectly reasonable and very sensible. At the renewal next year, his insurer called to enquire whether his alarm was National Approval Council For Security Systems (NACOSS) approved and that it had indeed been installed by a professional, as they had requested.

Michael responded that he was told no such thing and challenged his insurance provider: luckily previous calls had been recorded and they admitted their fault – Michael had not been given these instructions at all. However, the insurance company's underwriters would not accept a 'generic' alarm system and so they refused to insure Michael, who then set about trying to find a new insurer. He did not envisage any problems, only to find to his shock that he could find no one to insure him at a premium he could afford because a) he had a large claim and b) his alarm system was 'generic' and c) he had special terms imposed.

The huge worry for Michael was that during the time he tried to get insurance, his property and contents remained uncovered. Eventually Michael found an insurance company willing to provide insurance for him, on the agreement that whenever the property was empty the alarm was set and that he had taken all possible precautions to secure his property as far as was possible (window locks, etc).

None of this was Michael's fault, just a communications failure which led to him having huge problems whenever he declared his previous claim, the situation with the alarm and the fact that he has had special terms imposed on his insurance policy. At Westhill Insurance Services we take a down to earth approach to problems and we listen to our customers: this means we can offer a solution, very often finding an insurance policy which will provide good cover at a reasonable price – even when people have been refused insurance elsewhere.

So if you have a problem with your insurance, don't be tempted not to declare any claims or problems and do not buy on-line as you may well only compound the situation. Just pick up the phone to our friendly advisors, explain your problem and we will be delighted to assist. Westhill Insurance Services – providing solutions for problems created by other people!

Contact Westhill Insurance Services, today.

Posted on 14th October, 2013