Are small claims on your home insurance worth the premium increase?

15/10/2020

To many people making a claim on their home insurance really is a last resort, but for some its their only option when disaster strikes. The question is what does classify as a disaster?
Is it your home been breached by intruders, items taken and damaged? Or is it a spilled drink on a radio?

Disaster by definition is a sudden accident or a natural catastrophe that causes great damage or loss of life.
Perspective is key!

The understanding of the impact that making a small claim on your home insurance can make is important. Premium increases are inevitable after any claim but did you know that this can also effect your renewal? Even if you switch providers the claim will follow you and in turn the premium that you are offered will be higher. This also applies if you call to inquire about making a claim without pursuing it!

Most providers will insist that you report any claimable incident even if you do not proceed to a claim.

This is where we step in, your adviser can determine the validity of your perspective claim without it effecting your premiums. We will advise you on whether processing a claim is a good idea and support you should you decide proceed.

To answer the main question “are small claims on your home insurance worth the premium increase?” our answer is no. Most home insurance policy excesses will start between £75 and £100, so really unless the item is around the £250+ we would not advise claiming as the long-term premium increase could out-way the short-term benefit.

Home insurance policies differ in conditions and excess values, feel free to get in touch if you feel that your home insurance could be working better for you.