Making a Claim on Your Insurance - Hidden Rule Warning

What do you think about when you are deciding whether to make a claim on your home contents insurance? How much you can get and whether you can claim more than the excess is probably about the extent of your thinking.
But there is something else you need to think about and it involves a hidden rule that could affect your ability to obtain insurance cover in the future.
Think: have you made any other home insurance claims in the last three years?
If you claim more than twice in three years, most insurers will consider you a high risk because your rate of claims is unusual. When you apply for a quote to a new insurer, if you divulge that you have made three or more claims in the last three years, most of them will decline to quote.
And when your current renewal comes around you will be horrified at the hike in your premium. If any of your claims were for small amounts, they could be completely negated by the price you now have to pay.
Suppose your house was burgled in year one and you made a claim. Then in year two a storm damaged your garden shed, which was also covered by your policy. Although it did not cost that much to repair, you decided to claim again. Then the burglars returned so you made another claim.
This could be expensive in more ways than one. Do remember this hidden rule and think before you make a smaller claim: you never know what might be round the corner.
Lynn Watson is the Director of Office Assistants, a company certified by the Institute of Certified Bookkeepers. They offer small to medium businesses of all types the chance to cherry pick from a flexible range of services including bookkeeping; VAT; Payroll; CIS returns and general office services. The company has 20 years experience and pure expertise in streamlining systems and making substantial savings for all types of Essex and London businesses from sole traders upwards.