Home insurance high claim number

Discussion in 'Insurance Law Forum' started by jjjohn, 26 May 2019.

  1. jjjohn

    jjjohn Active Member

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    Hello l have had some bad luck with leaky pipes and appliances over past few years causing water damage to floors. l had a successful claim for water damage from a leaky pipe two years ago and a denied claim which was deneied becasue it turned out the water damage happened when l was with a different insurance company. Earlier this year l discovered water damage to the wooden subfloor underneath by bathroom and laundry floors each had a separate cause so if l go ahead l would need to make two separate claims l beleive.
    Therefore if l go ahead that will add two claims to my record which means l would have made 4 claims in past 3 years, two with my old company and two with new insurance company. How will this impact my policy and premumim , is there a real danger the insurance company wont renew my policy based on too many claims.
     
  2. SaulGoodman

    SaulGoodman Active Member

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    I worked as a claims manager for a large Australian insurer a few years ago, so my understanding is based on what the policies were then, please be aware they may have changed. Contrary to popular belief more claims is not always associated with higher premium. Rather if the insurer notices a particular pattern, usually accidental damage or lost/stolen claims, they will either refuse to insure for that particular category or apply a higher excess for future claims. It may result in higher premiums if you insure with someone else and are required to disclose the claims. The insurer might refuse to renew your policy if they form a view that a lot of the pipework in your home has deteriorated and susceptible to leaking. However if it is isolated to one area then it is unlikely they would take that path. Also, don't forget they won't pay for the damage to the pipe if it leaked because of wear and tear, they will only pay for resultant damage.
     
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