How will having my insurance cancelled effect getting new insurance?

Question

Hi

I had a dispute with Halifax house insurance over a claim I put in. I was not happy with they way they dealt with me and was going to cancel my insurance with them as soon as my claim had been settled one way or the other and even discussed cancelling it with them at one point. However I let the insurance run to see the outcome of the claim. Halifax did not pay out and in the same letter they sent me informing they were not payning out they told me they were cancelling my insurance. Im not very happy about this as I have done nothing wrong. I now have to find alternative buildings insurance and am worried as on line they ask if you have had insurance cancelled in the past. How will this affect my insurance?

Answer 1

Well, it could make it harder to find someone to take you on, depending on the reason WHY they are cancelling you.

Answer 2

It really depends on why they are cancelling your insurance. When I worked at a company that did a lot of personal lines (auto, homeowners), we were looking for red flags with that question. Red flags would be a high loss ratio, lack of cooperation with claims or underwriting or anything else that would make a company apprehensive from doing business. If it was anything like nonpayment of premium or for a logical underwriting reason then we wouldn't really look into it too much.

Now are you sure they are cancelling you? That would mean they want to end the policy before the expiration date. Or are the non-renewing you? There is a difference and it is usually hard for an insurance company (especially with personal lines) to "cancel" a policy once it is inforce. They have to have a good justification for it like gross misrepresentation by you or your agent or a material change in the risk (you). Non-renewing is a different story.