If I did not tell my insurer about a change, can it refuse to pay?

Question

José Manuel Alburquerque · Accepted Answer

For failing to report it, only if the change significantly increased the risk and you acted in bad faith. If there was no bad faith, the insurer must pay, although it can reduce the payout in proportion to the higher premium it would have charged. In addition, the change must relate to something you were asked in the questionnaire when you took out the policy. In personal insurance, changes in your health never have to be reported. Which changes must be reported Those that affect what you declared in the questionnaire and are so significant that, had it known of them, the insurer would not have entered into the contract or would have done so on less favourable terms. Examples include leaving the home empty for a long time, letting it to tourists, setting up a business at home or using the car for deliveries or as a private hire vehicle (“VTC”) when it was declared for private use. You must tell the insurer as soon as possible, in writing. What happens if you do not report it If an insured event occurs and there was bad faith, the insurer does not pay. If there was no bad faith, it pays part of the claim, in the ratio between the premium you were paying and the one you would have paid for the real risk. The insurer must prove that the change existed, that the questionnaire asked about it and, in order to pay nothing, that there was bad faith. If you report it, the insurer can, within two months, propose a new premium, which you have fifteen days to accept, or terminate the contract. Exclusions in the policy itself are a different matter, such as the exclusion of burglary in a home left unoccupied for longer than the policy allows. They apply even without bad faith, provided they are clear and, if they restrict your rights, are highlighted and signed. Conversely, if the risk goes down If the risk decreases, for example because you fit a security door or an alarm, you can report it and ask for the premium to be lowered for the next policy year. If the insurer does not do so, you are entitled to terminate the contract and to have the difference refunded.