Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
CIDRA 2012 replaced the old insurance disclosure duty. You now only need to answer the insurer's questions carefully and honestly -- you do not need to volunteer information not asked. Vague questions cannot be used against you. For careless misrepresentation, the insurer must apply a proportionate remedy rather than automatically voiding the policy.
What Is CIDRA 2012 and How Does It Protect You When Buying Insurance?
Direct answer
What is my duty to disclose information when buying home insurance?
Under CIDRA 2012 (legislation.gov.uk/ukpga/2012/6), you must take reasonable care not to make a misrepresentation in answer to the insurer's questions. You do not need to volunteer information not asked. Vague questions cannot be used against you. For careless misrepresentation, the remedy is proportionate -- not automatic policy voiding.
FCA Handbook - CIDRA 2012 Section 3 - Verbatim Rule Text Source: handbook.fca.org.uk
A consumer must take reasonable care not to make a misrepresentation to the insurer. Whether a consumer has taken reasonable care to answer a question is to be determined in the light of all the relevant circumstances.
Answer each question carefully
Re-read each question on the insurance application. If unsure what is being asked, ask the insurer or broker to clarify before answering.
Do not volunteer information not asked
CIDRA 2012 limits your duty to responding to questions. You do not need to volunteer information the insurer has not asked about.
Keep a record of what you disclosed
Note the questions you were asked and the answers you gave. If there is later a dispute, your record of what was asked matters.
Challenge ambiguous question applications
If the insurer declines a claim or voids a policy based on an answer to an ambiguous question, challenge citing CIDRA 2012. The insurer must show the question was clear and your answer was unreasonable.
Check the insurer applies the proportionate remedy
For careless misrepresentation, the remedy must be proportionate under CIDRA 2012 -- not automatic voiding. Challenge any disproportionate remedy through the FOS.
| Misrepresentation type | Insurer's remedy under CIDRA 2012 | Consumer's position |
|---|---|---|
| Deliberate or reckless | Void policy, retain premiums, decline all claims | Very limited -- burden is on insurer to prove intent |
| Careless -- insurer would not have offered cover | Void policy but must return premiums | Challenge if insurer would have offered on different terms |
| Careless -- insurer would have charged more premium | Reduce claim proportionately | Challenge if reduction is disproportionate |
| Answer to ambiguous question | No remedy -- insurer's question was unclear | Cite CIDRA 2012 Section 3 -- reasonable interpretation of vague question |
Related KT guides
Frequently Asked Questions
What is the Consumer Insurance (Disclosure and Representations) Act 2012?
CIDRA 2012 replaced the previous duty of disclosure in consumer insurance contracts. Under the old law (Marine Insurance Act 1906), consumers had to volunteer all material facts even if not asked. CIDRA 2012 replaced this with a duty to take reasonable care not to make a misrepresentation in response to the insurer's questions. The consumer's duty is now response-based: the insurer asks questions, and the consumer must answer them carefully and honestly.
What is the consumer's duty under CIDRA 2012?
Under CIDRA 2012, consumers must take reasonable care not to make a misrepresentation when applying for insurance. This is judged against what a reasonable person in the consumer's circumstances would have disclosed. The duty is limited to answering the insurer's questions honestly and carefully -- consumers no longer need to volunteer information the insurer has not asked about. The test is: did the consumer answer each question carefully and honestly based on what a reasonable person would have known and understood by that question?
What are the remedies for misrepresentation under CIDRA 2012?
CIDRA 2012 creates a three-tier remedy system depending on the type of misrepresentation. For deliberate or reckless misrepresentation: the insurer can void the policy from inception, retain all premiums and decline all claims. For careless misrepresentation where the insurer would not have offered cover at all: the insurer can void the policy and return premiums. For careless misrepresentation where the insurer would have offered cover on different terms: the insurer applies a proportionate remedy (e.g. if the insurer would have charged 50% more premium, they reduce the claim by 50%).
What if the insurer's question was ambiguous?
Under CIDRA 2012, if an insurer's question is ambiguous, the consumer's duty is reduced. If the consumer answered the question in one reasonable interpretation and the insurer had a different interpretation in mind, the consumer has not misrepresented. The insurer carries the burden of asking clear questions. This is a significant consumer protection -- vague questions cannot be used to deny claims based on answers that were reasonable in the context of the question asked.
How does CIDRA 2012 affect my home insurance claim?
If an insurer declines a home insurance claim on the basis of misrepresentation, they must specify the misrepresentation and the remedy they are applying under CIDRA 2012. They must identify whether the alleged misrepresentation was deliberate, reckless, or careless and apply the proportionate remedy appropriate to each category. If the insurer voids the policy for what you believe was a careless (not deliberate) misrepresentation, or applies a disproportionate remedy, challenge through the FOS. The FOS applies CIDRA 2012 in its decisions on misrepresentation disputes.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
