# Will there be an increase in home insurance premium after a claim ?



## Susie2017 (27 Jun 2017)

Just as the title suggests. A relative has a claim in for weather related structural damage to their home which will be for approx 20 k. Will they be penalised for this claim in their insurance premiums in future years. Company have made them an offer and they have to decide whether to accept. It will more than cover the costs but will they end up paying larger insurance bills into the future, which could be a problem for them as they are pensioners. they could probably get work done for less if they got a few different quotes. Loss adjuster did the figures for them.


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## odyssey06 (27 Jun 2017)

At the very least I would expect them to lose their no claims discount which would typically be in the region of 30% to 50%. Insurance company may apply a claim loading of 20%. 
So insurance premium could go up by let's say €500-€1000 for a few years until you re-earn your no claims discount.
So I can't see it costing more than the repair costs.
And at this stage though the claim has already been submitted... so the process has already started with the insurance company. I would advise against backing out now.


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## Susie2017 (27 Jun 2017)

I take it the premium will go up then by a total of 70% worst case scenario ?How long is a few years ? How many to re earn no claims bonus ? Do they have to stick with same insurer /level of cover ?


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## odyssey06 (27 Jun 2017)

It depends on the no claims discount scale of their current insurer \ policy. If they currently have a 30% NCD, there will be a 30% increase. Some insurers operate a 50% NCD.
In year 1 you are looking at an increase of 30% - 70%, for every year after that, the level should reduce by10%.
Within 3-5 years they should be back where they were pre-claim.

They may find difficulty in changing to a different insurer for 3-5 years as they have notified a claim.

Regardless of whether they make a claim, if there were a lot of claims in the locality for a particular risk e.g. storm, their premiums could go up regardless by a factor of 10-20% as insurers will use this data to drive their premiums. If the insurer feels the area is particularly exposed to this risk they may decline to insure the property for storm damage in future.


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## Susie2017 (27 Jun 2017)

I'm not sure what their NCD is. They have no previous claims. Even 50 percent would be a huge hike, I think they pay around 800 pa. They are worried now that the builder won't provide an invoice for the full amount, even though insurance is approved. What happens when builders receipt including VAT is for an amount less than what has been approved ? Will the insurance still pay out ? Will loss adjuster be put out as their percentage will be less ? Why did other poster advise against backing out ....they are not going to but just wondering why this advice given ?


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## odyssey06 (27 Jun 2017)

If the insurance company has already been notified of the claim, then you are already in the process... that's why I would advise against paying this out now from own pocket and backing out from the claims process. Changing insurers you would have to declare this incident and they may not consider you claims free.
I think it would be a bigger issue if the invoice was for an amount > the approved amount, no?  I think the insurance company itself should be able to answer your questions on the prcoess for paying out the claim based on the actual invoice versus the loss estimate.


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## Susie2017 (27 Jun 2017)

Yes I see what you mean about the invoice amount. I suppose a lot of people would be happy to see a larger amount being offered. This couple just wanted the builders quote covered they didn't expect to be offered more than that. I had wondered perhaps if the loss adjuster put too high a value on the job to increase their bill which amounts to 10 percent plus vat ? The owners are concerned that their future payments will be increased ( justifiably) given that insurance renewal could rise by 70 percent in the first year. If the claim was settled for a lesser amount would the insurance rise by as much, say if claim could be settled for 10 - 15 k as opposed to 20 k ? How should this couple approach the loss adjuster in this circumstance ? They are clueless about insurance claims, elderly and under enough stress already. He ( loss adjuster) has asked them to get a builders invoice for the full amount offered and they are not comfortable with asking the builder for what is essentially an inflated invoice....


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## odyssey06 (28 Jun 2017)

It seems like a very strange scenario... did the loss adjuster make certain assumptions about the level of repairs \ materials to be used \ structural reinforcement that has gotten lost in translation via the builder? I think the conversation with the loss adjuster should focus on that.

I would not expect the difference in a 10k versus 20k claim to have a significant impact on premium.


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## Leo (28 Jun 2017)

Susie2017 said:


> He ( loss adjuster) has asked them to get a builders invoice for the full amount offered and they are not comfortable with asking the builder for what is essentially an inflated invoice....



If the loss-adjuster is making your relatives uncomfortable, suggest that they request he put this request in writing as they are unsure of the process and are getting advice from a family member. It appears the loss-adjuster is requesting that they be party to fraud.

Your relative may have sourced a more honest builder than the loss-adjuster expected who didn't inflate the price significantly upon hearing the words 'insurance claim'.


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## Monbretia (28 Jun 2017)

Make sure too that the builders quote covers everything that needs to be done, for example in case something like painting was outside of that quote but the loss adjuster had allowed for everything that needs to be done to put them back where they were with repairs.


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## Jimbobp (28 Jun 2017)

In reality we don't find that home insurance increases massively after a claim and whether €200 is paid out or €200,000, it seems to have the same effect on the premium. It will prevent your relatives from shopping around for a few years, but if the existing insurer increases their premium dramatically there are specialist home insurers that will quote within 3 years of a claim, so I would say def go ahead with the claim (bear in mind that if they have any other property policies, they will need to disclose the claim to that insurer as well).


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## Susie2017 (28 Jun 2017)

Hi thanks for that who are the specialist home insurers ? Just out of interest if one did have another property would you need to inform the insurers straight away or at renewal time ?  The loss adjuster has written to them asking for invoices to be supplied to the amount approved. I will advise them as outlined above.


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## Ravima (28 Jun 2017)

Susie, there is a huge difference between a Loss Adjuster and a Loss Assessor. The former is employed by the Insurer and should certainly NOT be seeking a backhander of 10% of the claim. If s/he is, you should immediately report them to the Insurer.


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## Jimbobp (29 Jun 2017)

Susie2017 said:


> Hi thanks for that who are the specialist home insurers ? Just out of interest if one did have another property would you need to inform the insurers straight away or at renewal time ?  The loss adjuster has written to them asking for invoices to be supplied to the amount approved. I will advise them as outlined above.



We deal with a number of Lloyds insurers that will quote when the standard insurers in Ireland won't. You should tell the other insurer straightaway, if their was a claim on the 2nd property before renewal date, you run the risk of it not been paid out.


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## LS400 (1 Jul 2017)

€800 for home insurance? That's what stands out more than the possible shananagins, are they getting a fair quote?

It sounds like they are paying that premium though a their bank, like we use to many years ago before we copped on, either that or, they have a massive property to insure.

In the context of property claims, 20k, although a large amount, is not excessive. This builder seems to be a fair guy. I'd stick with him.
It's more than I can say for the Loss Adjuster.


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