Rejected for Insurance

[TMNT]

well sort of,

I have probably 10 policies with an insurance company, starting with "E"

ive had an unlucky year and made 2-3 claims,

Today I received like 5 "we will not be renewing your policy when it expires"
from properties that didnt have claims,

is this normal behaviour??

feel like ive just been dumped by my girlfriend, and this insurance company has been pretty good so far,

would have thought, thats the point of insurance, some you win, some you lose, but overall the insurance company makes a profit

 

[DaveM]

Depends on the underwriter QBE's policies... but I see that TS now ask the below and if you answer yes, you cant get an online quote

"You have had 3 or more loss of rent claims over the last 5 years"

I expect they are trying to make LL insurance not the easy way out vs poor tenant selection

 

[TMNT]

Depends on the underwriter QBE's policies... but I see that TS now ask the below and if you answer yes, you cant get an online quote

"You have had 3 or more loss of rent claims over the last 5 years"

I expect they are trying to make LL insurance not the easy way out vs poor tenant selection

interesting, EBM dont have that question for their online quote

but I gather that after they process it, if they dont like you or the property matches up on the system, then they will send you another one of those rejection letters/emails

 

[DaveM]

I would suggest calling them and seeing what they can advise as to why they wont insure

 

[alicudi]

Hi

I would go to great lengths to try and remain at the existing insurance company and renew the policy and if you still have a sour feeling towards them and want to leave then try and do it at your own merit.

Some insurance companies ask the question: "Have you ever been refused insurance in the past?". Answering yes to that question is always going to give grief.

Best of luck.

I hate insurance companies.

Regards,

alicudi

 

[jackbak]

I would suggest calling them and seeing what they can advise as to why they wont insure

Good advice, I've always found them fantastic to deal with and willing to go the extra mile.

 

[Paul@PFI]

Hi

Some insurance companies ask the question: "Have you ever been refused insurance in the past?". Answering yes to that question is always going to give grief.

I just made a claim on my home policy (NRMA/ IAG) for fusion on a fridge (The home has AC so fusion cover is a MUST. The last claim was fan fire in the roof valued over $2800). During the claim I was asked a number of questions about prior cover etc. In discussions with claims they told me that if I hadn't been with them for "X" years (5??) they would check to see if the former insurer has reduced cover , limited cover or declined to insure....I asked why and they advised it didnt apply to me then she offered that if they check and find a issue then then would deny my claim. The usually dont take on policies that other insurers decline. She did say sometimes they do - Apparently AAMI and others especially the discount online policies often remove blocks of postcodes from their policies !!!

That said they were fantastic. The paid me $1600 for a $1200 fridge. That included spoilage 2 days after Xmas (grrr) etc. Paid in a few days. ... My NCB drops 10% and I now have to wait a additional 12 mths to get my lifetime unlimited claims max NCB which was supposed to start in a month.

 

[alicudi]

Hi

Thanks Paul@PFI for your information.

It makes me wonder why on earth us normal people would pay insurance if the insurance company tells us they will deny our claim if we had previously had an issue such as the one's you have mentioned. You think they would be obliged to tell us this when we take out the policy that we will get no cover and that we are just throwing good money at an insurance cover that won't ever pay out when it's time to make a claim.

Regards,

alicudi

 

[brettc]

It would be inappropriate for me to discuss a specific situation such as this in a public forum, particularly for privacy reasons.

On a general note however Insurers have to make decisions regarding renewal (and for that matter new risks as well) based on a whole range of criteria for a number of reasons. This includes underwriting criteria, losses etc. however there can be other mitigating circumstances that may be taken into account, the same as there would be for any other business in their dealings. These decisions (which are often tough ones) need to be made to maintain premiums at reasonable levels for the majority of clients, and ensure the ongoing viability of a product. There may also be reasons that are not strictly product or loss related. It can on the surface appear tough without being aware of the full circumstances however these decisions are never taken lightly and are implemented with good reason.

These are general statements and not aimed at this specific situation.

 

[brettc]

I just made a claim on my home policy (NRMA/ IAG) for fusion on a fridge (The home has AC so fusion cover is a MUST. The last claim was fan fire in the roof valued over $2800). During the claim I was asked a number of questions about prior cover etc. In discussions with claims they told me that if I hadn't been with them for "X" years (5??) they would check to see if the former insurer has reduced cover , limited cover or declined to insure....I asked why and they advised it didnt apply to me then she offered that if they check and find a issue then then would deny my claim. The usually dont take on policies that other insurers decline. She did say sometimes they do -

It's quite normal that during a claim the Insurer may ask you some of these questions. When you took out your policy you would have had a Duty of Disclosure under the Insurance Contracts Act (1984).

Basically it means that you were required to answer questions truthfully, and to disclose anything that a reasonable person is likely to be aware of that may have an influence on the Insurer's decision as to whether they accept the risk or not.

Even though you would have agreed to this at the policy commencement, they will generally ask again during the claim process. When you took out the policy they accepted your answers on face value and without checking, so if you lied to them and deliberately didn't disclose information they asked for then they may have the right to deny or reduce your claim. Which is fair enough. If you were honest (speaking generally not "you" specifically) then you have nothing to worry about.

They may be trying to catch people out in a lie, or just ticking the boxes. The reality is that although people often think of the Insurer's as being the baddies, honest people probably have no idea as to the extent of fraud that goes on. That's what they are trying to catch out.

The simple fact is that insurance fraud costs honest policyholder's because it increases premiums.

Apparently AAMI and others especially the discount online policies often remove blocks of postcodes from their policies !!!

That's completely normal. I would imagine every Insurer has "decline" areas, places where they don't wish to take on any risks, or not take on more than they currently have. It's like any business, Insurers can decide who they wish to deal with, and sometimes certain areas represent a risk that they are not willing to take. This has become particularly prevalent in some of the northern areas of Australia (above the 26th parallel). Some Insurer's don't want any further risks in an area because they believe they are too exposed and that a major cyclone etc. could be too much for them to handle. An Insurer needs to be sure they can handle claims that come their way so need to determine whether a risk is worth it or not, for the premium they are receiving, remembering that the premium is only a tiny proportion of what the potential exposure is to the Insurer.

 

[brettc]

You think they would be obliged to tell us this when we take out the policy that we will get no cover and that we are just throwing good money at an insurance cover that won't ever pay out when it's time to make a claim.

They do. That's what the Duty of Disclosure is all about, as long as you answer questions honestly when arranging the policy you have nothing to worry about.

 

[skater]

While I can't comment on TMNT's situation, I would be interested in knowing if insurers take a look at the whole picture when deciding whether or not to insure someone.

For instance, if you are an investor with, say, 10 policies, you are more at risk of having to make a claim than if you only had one policy. Now, lets say, for instance, that you've not needed to make a claim for a while, then all of a sudden you get three claims all on top of each other. This does not necessarily mean that you are a risk, I would think.

So, maybe it's a good idea to spread the risk & use more than the one insurer.

 

[brettc]

While I can't comment on TMNT's situation, I would be interested in knowing if insurers take a look at the whole picture when deciding whether or not to insure someone.

For instance, if you are an investor with, say, 10 policies, you are more at risk of having to make a claim than if you only had one policy. Now, lets say, for instance, that you've not needed to make a claim for a while, then all of a sudden you get three claims all on top of each other. This does not necessarily mean that you are a risk, I would think.

So, maybe it's a good idea to spread the risk & use more than the one insurer.

More likely to be the opposite to be honest. If you have 10 policies, the way the Insurer is likely to view it is that the risk is being spread across your portfolio of 10 properties, that's one of the reasons that there are often discounts for insuring multiple properties. If they really delved deeply (which they are unlikely to do) and found that you had 50 properties, but decided to only insure the 10 properties in the worst area with them, and insure all the better properties elsewhere, they may be more concerned. Insurance is about spreading the risk, the good with the bad, that's the only way it can work. There have to be claims so that it is of value, but there also have to be a balance of properties without claims or the Insurer would go broke.

 

[Tyla]

More likely to be the opposite to be honest. If you have 10 policies, the way the Insurer is likely to view it is that the risk is being spread across your portfolio of 10 properties, that's one of the reasons that there are often discounts for insuring multiple properties. If they really delved deeply (which they are unlikely to do) and found that you had 50 properties, but decided to only insure the 10 properties in the worst area with them, and insure all the better properties elsewhere, they may be more concerned. Insurance is about spreading the risk, the good with the bad, that's the only way it can work. There have to be claims so that it is of value, but there also have to be a balance of properties without claims or the Insurer would go broke.

The OP has 10 policies and claimed 2-3 within a year (same property?). Now EBM won't renew at least 5. If the policies were spread across 10 insurers for example, all would be possible to renew except the ones claimed may be 50:50. so where is the benefit in combining?

IMO discounts you mentioned are there not because there is less risk. They wont even take into account like the mix of properties, regions, etc before giving discount. If I had CTP and comprehensive with same insurer, i get discount, more if I add building too. Is that because the risk is spread?

 

[D.T.]

The OP has 10 policies and claimed 2-3 within a year (same property?). Now EBM won't renew at least 5.

A lot more to the story i suspect. Don't extrapolate based on little info given.

 

[Mr. Fabulous]

would have thought, thats the point of insurance, some you win, some you lose, but overall the insurance company makes a profit

Are you for real? How do you think they'd make money if they take on/renew high risk policy holders? They're not running a charity.

 

[Andrea Caling]

Declined insurance - change companies

Why not search around. I have policies for landlord with Honan Insurance Group and they are exceptional - call them on 0399474333 - Made claims without issues, will discuss policies directly with agents and landlords (if it is noted who the agent is) and are quite reasonable in the costs and cover a lot more than most standard landlord policies that I have seen in the last 10 years. NSW policy for landlord is approx $340 per year which so far has been the cheapest that I have seen!!! Shop around is my advice and get someone who is going to suit your needs and not suit the needs of their own insurance company.

 

[zimby]

Interesting as we recently made a claim for a small amount( 600 in the pocket all up)
At what point do we start not claiming just to keep the ability to claim?

 

[brettc]

Interesting as we recently made a claim for a small amount( 600 in the pocket all up)
At what point do we start not claiming just to keep the ability to claim?

On the whole the RentCover product/loss ratio is taken on a whole portfolio, or at least whole region basis. The instances of even looking at individual risks is rare, but from an underwriting point of view it can occur on occasions for a variety of reasons, and must be addressed. Unfortunately without understanding the full facts which under no circumstances will I go into, it is impossible to understand.

What I can say is that over the past 20+ years I have experienced first hand the effort that has gone into working with landlords/agents who have suffered some misfortune, a run of bad luck etc. on more occasions than I can count, which gives me 100% confidence in the decisions that are made at the back end.

In fact I can confidently say that it is that backend claims effort that has been the greatest attribute of the policy and company, and the major reason for it's success when so many others have tried and failed.

Unfortunately, insurance is a "grudge buy", no want wants to pay for it (including me), and it will always be the first thing to get kicked in the teeth and criticised. But what the public doesn't see is what we see, and it would blow your mind if you did. If tough decisions weren't made your premiums would go through the roof.

The other point about insurance is that these days it is probably the most regulated industry in Australia, there are very clear complaints procedures where someone feels they have been wronged, and they are not hard to take.

 

[marg4000]

I would strongly suggest you contact your insurance company and see if you can negotiate renewal and have the declines cancelled.

Even if the terms are much more expensive, once you have renewed you are free to insure elsewhere then cancel the existing policies.

Otherwise, you are legally bound to disclose to any future insurer that you have had renewals of policies declined.
Marg