You may be interested to read about some research that has been carried out with 2,000 people by the well-known price comparison website Gocompare.com relating to when people apply for home insurance.
Apparently, some applicants have either withheld relevant information or been, shall we say, less than honest when providing answers to some of the questions for home insurance. In fact, the research indicated that 18% of homeowners in the UK acted in this way – a huge percentage.
This is not a good basis for a new relationship between the insurance company and client. It is also concerning when you consider that we are talking about insuring one or more valuable assets such as a home and its belongings.
Some of the examples given of inaccurate or withheld information on home insurance application forms included stating that they are non-smokers (5% of people), is their home occupied during the day or not (6% of people), declaring that they live in a Neighbourhood Watch area when they do not (9% of people) and incorrectly detailing the types of locks fitted to windows and doors (12% of people).
Rather worryingly, 27% of those taking part in the survey did not feel that overstating a claim or withholding information when applying for home insurance was fraudulent. A significant 30% of people believed that everyone who obtains a quote for home insurance lies when doing so.
If it were found that a policyholder had deliberately provided incorrect information or withheld relevant information it has a number of implications including the insurance company potentially refusing to pay out should a claim be made. It could also lead to the insurance company cancelling the policy leaving the customer to try to find insurance elsewhere that may not be possible or, if it is, could be for a significantly larger premium. Other examples include a reduced settlement.
So, it is better to provide accurate information at the outset. For instance, the applicant should find out exactly what types of locks have been fitted in the home and, if a claim has been made on a home insurance policy in the past, how much it was for and when it was made.
At AIB we have a long history providing tailored insurance for our clients and can cover the more unusual risks including criminal convictions, subsidence and flood risk areas. Call the team now on 02380 268351 for an instant quote and cover.
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