3. Disclosure issues
If you’ve failed to disclose something that an insurance provider considers pivotal – for example, you’d had previous claims but didn’t tell them when you took out the policy, or you hadn’t declared you have a lodger living with you – they might decline to continue your cover.
It’s worth noting that non-disclosure can invalidate your policy, so you should keep your insurance provider updated of any changes. For example, if you have an extension and your property gets bigger, or you start to run a business from home.
4. A change in your circumstances
If you’ve had a conviction during the year, changed your job or had a change in your financial circumstances, an insurance provider may no longer want to insure you because they consider you a higher risk.
5. The insurance provider no longer offers a type of cover
Insurance providers can change their minds about what types of risk they want to insure. For example, some providers no longer offer flood cover following the impact of major floods. Others may have once insured a particular type of non-standard home but no longer wish to, based on their claims experience.
Sometimes after a merger or takeover, an insurance provider may realign what cover it offers too.
Insurance providers are increasingly using sophisticated data to assess risk to be able to more accurately predict likely claims, and because of this may decline to insure you. But not all providers interpret the data in the same way, so just because you’ve been turned down by one doesn't mean another will do the same.
A provider might not always decline your renewal or cancel your policy, but they might insist on adding an endorsement for them to continue to offer you cover. Endorsements are special terms imposed on your policy. This might mean an increased excess for situations that have resulted in numerous claims – for example, escape of water. They could even exclude certain elements of cover, like theft if there’s been a significant increase in break-ins in your area.