Could installing Sat Nav invalidate your car insurance?: Thousands of people invalidate their insurance claims every year and they don't even realize it. Make sure you're not one of them.
Most people are aware that leaving their front door or car unlocked will result in their insurance policy being declared void, but there are also a number of little-known and apparently trivial ways in which policyholders can invalidate their claims.
Not all home insurance policies, for example, cover damage done to your property as a result of building work carried out by a third party (in a similar way, car modifications can void a vehicle insurance policy if an insurer is not told). Accidents involving a lodger (who increases the risk of damage to the house) could invalidate your policy if your insurer is not told about the newcomer's presence.
"Even if a lodger is a family member or friend, accidents can still happen", says Simon Douglas, director of AA Insurance. "But, provided you have an extension on your home insurance for accidental damage cover and have informed your policy of the lodger, you should be covered".
Failing to notify insurers about your employment status can also result in disputed claims. Companies are unlikely to be sympathetic to policyholders who make a claim after failing to tell them about a change of employer, or that they are now self-employed and using their home as a base for their own business. Vehicle insurers are equally zealous about knowing the occupations of their customers, as jobs that require long periods spent behind the wheel can trigger a drastic rise in premiums. Failing to disclose your vehicle's correct annual mileage or any medical condition that could affect your driving ability - such as epilepsy - is also frowned upon.
In case of theft or burglary, claims may not be paid out if the exact description of the lock given to the insurance company when the policy was taken out turns out to be erroneous. It may seem like a minor detail to you and me, but it can mean the difference between success and failure in terms of making claim. Meanwhile, homeowners who leave their property for over 30 days without telling their insurer will not be able to get any money back if they are the victims of a break-in, even if all their security arrangements were in place.
Pet owners would also be well advised to inform their insurers about apparently irrelevant changes in their lives. Something as minor as being prescribed a course of medication could indirectly invalidate their pet's policy if the insurance company is not notified. This is because accidental pet poisonings are on the increase, largely due to nicotine tablets, gum or patches which are harmless to humans but toxic to animals. Pets becoming obese and suffering subsequent health problems due to over-feeding is another issue which can result in compensation not being awarded.
Travel insurance customers would also do well to reveal any medical conditions that arise between the dates on which they renew their travel insurance and set off on holiday.
"A problem can arise if, in good faith, a customer books a holiday that starts after the policy renewal date but then has a change in their health", explains the Financial Ombudsman Service. "When the time comes to renew the policy, the customer may properly inform the insurer about their new medical condition, only to be told that - from the date of the renewal - the firm will not provide cover for any claims arising from that condition". †
NCD News: Could installing Sat Nav invalidate your car insurance? - 17.11.09
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