Four avoidable claims that push up the price of home insurance

Let's take a look at what those claims are, how much they add to the cost of cover and, crucially, the best ways to avoid them...

11:31 21 June 2013

Did you know that making a claim on your home insurance could push up the cost of cover by almost 50%?

In fact, claims for potentially avoidable household accidents have added an extra £17.4million to the cost of home insurance, according to MoneySupermarket research.

The study, which analysed 3.6million quotes run through our home insurance channel, also found that out of 13 potential reasons for claiming, just four make up the bulk (78%) of all claims on home insurance cover.

So let's take a look at what those claims are, how much they add to the cost of cover and, crucially, the best ways to avoid them...

Accidental damage

It probably comes as no surprise that accidental damage is the number one claim made on home insurance. It covers everything from drinks being spilt on carpets and couches to dropping the TV while rearranging the front room.

This type of claim accounts for 35% of all claims and could add 8% (or £10.45) to the cost of cover each year.

So, how can you avoid making an accidental damage claim?

•  Avoid placing drinks near electronic equipment, particularly away from laptop keyboards.
• Consider using protective covers on personal devices, especially if they are used by children.
• Take care to protect furniture and carpets when decorating and carrying out DIY. Don't take on more than you can manage.

 
Escape of water

Next on the list is escape of water, which makes up 19% of all claims and can add a whopping 30% (or £41.62) on to the cost of your annual home insurance policy.

Burst water pipes are the main reason for this type of claim; a problem that usually arises as a result of pipes expanding and bursting as they freeze during the winter months.

With that in mind, here are the best ways to avoid an escape of water claim:

• Keep the heating on a low setting so the temperature inside the house doesn't fall below 12C if you are away during winter.

 

• Fitting an automatic stopcock can reduce the risk of flood damage. This device is designed to shut down the water system if there is no water flow for a set number of days, if there is an unusually high flow rate, or if the ambient temperature drops below a certain point.

Theft

The third most common cause of a home insurance claim is theft; a problem that accounts for 18% of all claims and can add an eye-watering 42% on to the cost of cover (£57 a year).

Simply being vigilant is the best way to avoid having your belongings stolen, but here are some more specific pointers...

• Close and lock doors and windows, even if only going out for a few minutes. In the evening, shut curtains and leave the lights on.

 

• Fit and set a burglar alarm and security lights; make sure side and/or back gates are locked, as well as sheds and garages, and keep valuables out of site.

 

• Before going on holiday, cancel newspaper and milk deliveries. Ask a friend or neighbour to look in on the property, close curtains or park on the drive.  Use a timer device to automatically turn lights and a radio on at night.

 

• Store wheelie bins and other potential climbing aids behind locked gates.

Storm and flood damage

Amazingly, given the number of serious floods we've had over the last couple of years, storm and flood damage accounts for less than 1% of all contents claims.

It does, however, make up almost 8% of all claims on buildings insurance and can add an extra 34% (or £46.63) on to the cost of cover. In the worst cases, you could end up forking out £1,000s more at renewal or even struggle to get insurance at all.

But while it's impossible to completely protect yourself against floods, here are a few pointers that could help minimise the damage...

• Keep on top of home maintenance, check roofs for loose tiles and make sure guttering and drains are free from leaves and debris.

 

• Be aware of potential problem areas, such as conservatories and flat roofs. Routinely check that water drains freely; roof covers should be in good repair and free of standing water.

 

• When bad weather or high winds are forecast, make sure bikes and garden furniture are put away. Check the garden for anything that could be lifted by a strong wind and cause damage.

How to keep the cost of cover down

The good news is that competition among providers is continuing to bring down the cost of home insurance. So you shouldn't have to break the bank to find a policy that suits your needs.

However, it's important that you shop around for cover and don't just accept the first decent-sounding quote that comes along - comparing quotes with MoneySupermarket could save you as much as £212 on the cost of your home insurance.

Once you have that cover in place, be sure to take steps (such as those mentioned above) to try to avoid the need to make a claim so that your premiums don't rocket the following year.