Nondisclosure: Insurance
Nondisclosure means failure or refusal to declare or reveal some information that is required. This in insurance terms means that you do not inform the insurer of all the material facts that are needed to decide whether to insure you or not.
Does the insurance company need to know everything?
You only need to tell them all details that would affect your insurance acceptance. You are obliged to tell your insurance company anything that comes to light between the date of signing the proposal and issue of the policy.
What happens if I forget to disclose some information?
You should contact your insurer immediately as they may be able to alter your policy without cancellation. This may result, in some cases, in your insurance policy/cover being cancelled from the start date and/or an increase in your premium. You are obliged to tell your insurance company anything that comes to light between the date of signing the proposal and issue of the policy.
What happens if I make a claim to my Insurance company?
Contact Pro Insurance Claims immediately and they can advise you on how to proceed. Your claim could be refused due to nondisclosure. Insurance companies are very strict on this. There is a warning about nondisclosure on every application form so there is no excuse.
In summary be honest in your dealings with your insurance company from the beginning. If you have not disclosed all information your claim may not be met.
If your are not honest your claim can be refused, listed below are some other examples.
Your insurance claim can be refused for a number of reasons.
1. What you are claiming for is not covered by your insurance policy.
2. You have not met one of the conditions of your insurance policy. For example you did not report the theft or accident to the gardai.
3. The damage is not covered by a specific risk covered by your policy. For example the damage may have been caused by wear and tear.
4. You did not complete your initial application form correctly, honestly or accurately. If for example you had a pre existing illness that you did not inform them of.
5. In some insurance policies an insurance claim may be considered void if your alarm was not on at the time of the incident and there was no-one home.
If your insurance claim has been refused either your insurance company or broker must write to you explaining why it has been refused or they must also give you details how to make an appeal.
In some cases your insurance claim can be reduced. If you underestimated the cost of your home to be rebuilt and your contents replaced when you took out your insurance policy you could be entitled to less money than you claimed for. This is due to the 'average clause' that is included in some policies. Even if your claim is for less than the insured amount, the insurance company will look at the overall amount that you are insured for and work out the settlement offer at a percentage of the insured amount.
In summary, always ensure to insure your house and contents for what they are worth, no more, no less and to be honest and forthcoming when taking out your insurance policy. This way in the unfortunate event of an insurance claim you are starting on the best foot.