Claims history declaration on rent guarantee insurance?

Claims history declaration on rent guarantee insurance?

8:41 AM, 19th July 2022, About 4 weeks ago 3

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Hi, Could I please ask for a specialist opinion? I have had a claim made on my Rent Guarantee Insurance. When I am now quoting for my Landlord Insurance (building only) I am asked about claims in the last 5 years.

Different websites formulate the question in different ways. Mostly, it sounds as: “Have any claims been made and/or any losses suffered, whether insured or not, in connection with any property(ies) currently or previously part of your portfolio in the last 5 years?”

The wording “in connection with property” is very unclear. I have tried to clarify this by calling/emailing the insurers/brokers. I can get a reply only from the customer service people whose competence I am not sure.

From some insurers, I have got answers that the RGI claim does not need to be declared and others have said it should be declared. Also, most of these replies are given on the phone so I cannot prove anything if required. If I do not declare the RGI claim then the cheaper insurances are from those who want me to declare RGI loss

My personal opinion is that RGI should not be declared as it does not affect the property.

However, I am afraid that this could be taken as misrepresentation and I may face penalising actions by the insurer or/and I can get a claim on my building insurance rejected if I need to make it in future

What would be the correct way to go?

Do they have the right to request e to include RGI claim or reject my building insurance claim if I do not declare RGI claim?

Thank you.

oi2004as



Comments

Jason McClean - The Home Insurer View Profile

9:01 AM, 19th July 2022, About 4 weeks ago

Hi oi2004as

Whatever you think, you need to answer the question. If it asks: "Have you had any claims in the last 5-years", which is a common question, then you need to answer yes.

What normally happens is they ask the nature of the claim and when you disclose RGI, they will then normally disregard it - but all insurers are different and some may take it into account.

Simply answer the question exactly as it is asked, don't try to interpret it. It's not your job to tell the underwriter what is relevant.

This may knock out quotes from a lot of price comparison sites or make price comparison more expensive, so maybe call and talk to a trusted provider or broker and you should get a competitive quote, with correctly disclosed claims.

I hope this helps.

Mike Workman

9:40 AM, 19th July 2022, About 4 weeks ago

Reply to the comment left by Jason McClean - The Home Insurer at 19/07/2022 - 09:01
Hi. Based on my experience in the insurance industry, you MUST provide the claims info. As Jason says, they will probably disregard it when assessing your premium. But if you don't mention it and they find out when you make a claim, they are entitled to throw your claim out on the basis of 'material non-disclosure'. Hope this helps

Ian Narbeth View Profile

10:14 AM, 19th July 2022, About 4 weeks ago

I concur with Jason and Mike. You say: "The wording “in connection with property” is very unclear." No, it is very wide.
The classic test is that you should disclose any matter that might affect the mind of a prudent insurer.
If you are concerned that disclosure might lead to an increase in premium then that is precisely why you should disclose. As Jason says, best advice is to go through a decent broker.

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