Below are seven common reasons why insurance companies avoid paying claims – heed them and avoid financial shocks to your livelihood !

1. Failure to implement the security requirements imposed by the policy such as door and window locks or even an active alarm system.

2. Not having an intruder alarm under a maintenance agreement or not the right alarm as required by your insurance company eg a Red Care central station alarm as against a simple Bells Only alarm. Moreover, failure to notify your insurance provider if you’ve had excessive false alarms or if the Police response has been reduced or withdrawn may also leave you without financial compensation.

3. Lack of notifying your full claims history as required by your insurance provider may invalidate your claim in full or in part.

4. Not advising whether a Director or Partner of the Business has had interests in companies that had previously gone into liquidation or administration. This information is required by almost all insurers so make sure you get it right.

5. Failure to advise if any premise (that is insured) that has become unoccupied or vacant.

6. Lack of maintenance or badly maintained assets may result in your claim being rejected. For example roofs, gutters and downpipes should always be in a good state of repair.

7. Finally, the old chestnut of underinsurance. If you reduce the sum insured (of an asset) to get a lower premium, in the event of a claim, this will result in ‘average’ being applied which in turn means the value of your claim will be reduced. Don’t do it !

This is not an exhaustive list but these are some examples where you could be left out of pocket in the event of you making a legitimate claim.

If you ever need any advice or clarification, please do not hesitate to contact us on 0207 731 3700 or Email Us