TL;DR
Claiming on home insurance can increase your premium at renewal even for claims that are not your fault. Small claims where the payout is close to the excess may cost more in future premiums than the value of the claim. Always calculate the net financial position before deciding to claim.
Last reviewed: June 2026 | Sources: FCA, ABI
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Insurance Key Facts: Claiming on Home Insurance Premium impact: typically increases at renewalClaims record: shared via CUES databaseSmall claims: may cost more than they payExcess: deducted from payoutRegulator: FCA |
What happens when you make a home insurance claim
When you make a claim, the insurer investigates the circumstances, assesses the loss or damage, and either arranges repair or pays a cash settlement minus your excess. The claim is recorded on the Claims and Underwriting Exchange database, which insurers check when calculating premiums at renewal. A claims record typically remains on CUES for five to six years and is visible to any insurer you approach.
The risks most people do not check before claiming
Small claims may cost more in future premiums than they pay out. A £500 claim with a £250 excess results in a £250 payout. If this claim increases your annual premium by £100 over the next three years, the total additional cost is £300, exceeding the payout. On minor claims, self-funding the repair and preserving a no-claims discount is frequently the better financial decision.
Claims that are not your fault still affect your premium. A storm damage claim or a subsidence claim made on a property you occupy can increase premiums even where you did nothing to cause the loss. Insurers price on claims history, not fault.
Non-disclosure of previous claims voids cover. Home insurance applications require disclosure of claims in the past five years. Failing to disclose a claim, including one where no payout was made, can void a policy. Obtain your claims history from CUES before applying for new cover.
Claims for gradual deterioration are typically excluded. Home insurance covers sudden and unforeseen events, not gradual wear and deterioration. Leaking roofs, rising damp, rot and general wear are typically excluded. Attempting to claim for excluded perils wastes time and creates a record of an attempted claim on CUES.
What to verify before making a claim
Calculate the likely payout (estimated loss minus excess) and compare against the expected premium increase at renewal. Ask your insurer or broker informally what the impact on your premium would be before formally lodging the claim. Consider self-funding repairs below £500 to £1,000 to protect your no-claims discount.
Where to complain if a claim is wrongly refused
If an insurer refuses a valid claim, applies the wrong excess, or unreasonably delays settlement, the Financial Ombudsman Service handles insurance complaints after the insurer's internal complaints process is exhausted.
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Disclaimer This article is for information only and does not constitute regulated financial advice. Always verify current terms with relevant providers and seek regulated advice for your specific circumstances. Kael Tripton Ltd is an independent editorial publisher and is not regulated by the FCA. |
Frequently asked questions
How long does a home insurance claim affect my premiums?
Claims typically remain on the CUES database for five to six years and insurers typically ask about claims in the past five years on applications. The premium impact generally decreases as the claim ages.
Should I inform my insurer of damage even if I do not claim?
You are not required to notify your insurer of every incident if you do not intend to claim. However, if damage is related to a longer-term issue such as subsidence, it may be prudent to notify for record purposes. Check your policy wording for notification requirements.
What is the CUES database?
The Claims and Underwriting Exchange is a shared database used by UK insurers to record home and motor claims. It helps insurers assess risk at renewal or new application. You can request your own CUES report to check what is recorded.
Can my insurer cancel my policy after I make a claim?
An insurer cannot cancel a policy mid-term without good reason. However, at renewal, an insurer can decline to renew if your claims history makes you an unacceptable risk under their criteria. You must then seek cover elsewhere.
What is a no-claims discount and how much is it worth?
A no-claims discount reduces your premium based on the number of years without a claim, typically up to 30 to 50 percent after five years. No-claims discount protection is available on some policies and allows one or two claims without losing the discount.
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Sources FCA: Home Insurance Consumer Guide |
