A practical UK guide to understanding the decision, checking the information used and finding your next step
Being told that an insurer cannot offer or continue home insurance can be worrying, particularly if you need cover for a mortgage or your renewal date is approaching. The wording used also matters: an application being declined is different from an existing policy being cancelled, and both are different from a claim being declined.
This guide explains the main decisions you may encounter, common reasons behind them and the practical steps you can take next.
People often use these terms interchangeably, but they describe different events. Knowing which one applies helps you explain your insurance history accurately and decide what to do next.
An application is refused or declined when an insurer decides not to offer a new policy after assessing the information provided. This happens before cover starts. A refusal from one insurer does not mean every insurer will reach the same decision because underwriting criteria vary.
Non-renewal means the insurer will allow the current policy to reach its expiry date but will not offer a new policy for the next period. The existing policy normally remains in force until that date, subject to its terms. This gives you time to look for replacement cover, but it is sensible to start early.
Cancellation means an existing policy is brought to an end before its scheduled expiry date. The insurer should tell you when cover will end and what you need to do. Do not assume a cancellation is the same as non-renewal.
Avoidance is different again. It means an insurer treats the policy as if it had not been in force from the relevant start or renewal date. This may arise where the insurer believes information supplied when the policy was bought or renewed was incorrect or incomplete and that it would not have offered the policy had it received the correct information.
The outcome depends on the circumstances. The Financial Ombudsman Service explains that an insurer’s response to incorrect or incomplete information can include different terms, a proportionate claim settlement or avoidance of the policy. It also considers whether the questions were clear, whether the customer took reasonable care and whether the information would have changed the insurer’s decision.
A declined claim is a decision about a particular loss or event. It does not automatically mean the policy itself has been cancelled or avoided. Ask the insurer to explain the policy term, exclusion or evidence on which the claim decision is based.
Insurers assess applications against their own underwriting criteria. A decision can relate to the property, the people living there, the way the home is used or the insurer’s own appetite for a type of risk. Common examples include:
One insurer’s decision is not a universal verdict on the property. A specialist provider may ask for more detail and consider circumstances that do not fit a standard quote journey.
The reason should be considered in the context of the policy terms and the information the insurer requested. Examples may include:
Not every change automatically leads to cancellation, and not every error gives an insurer the same remedy. If the decision concerns information supplied when the policy was bought or renewed, the Consumer Insurance (Disclosure and Representations) Act 2012 and the insurer’s fair handling of the circumstances may be relevant.
Suppose extensive work begins and the household moves out for longer than expected. The policy may contain conditions about major building work or how long the home can be left unoccupied. Contact the insurer or broker as soon as plans change and follow the notification requirements in the policy. Depending on the work and the insurer’s criteria, the policy may continue with revised terms, require a specialist alternative or be unable to continue.
Do not wait until a claim to check whether a material change affects the cover. Equally, do not assume the outcome: ask the insurer to confirm its position in writing.
A standard online quote journey is designed for common circumstances. A specialist home insurance provider can ask more detailed questions and look for an insurer whose criteria better match the property and its history.
Intelligent Insurance may be able to consider homes after a previous refusal, cancellation or non-renewal, including circumstances involving previous claims, unusual construction, subsidence history, flood risk, building work or periods of unoccupancy.
Explore our refused home insurance cover and tell us what happened. We may be able to arrange a policy based on your individual circumstances.
We may not be able to quote in all circumstances. Cover limits, restrictions and/or conditions may apply and will be detailed before purchase and in the policy documentation.
Possibly. A refusal by one insurer does not mean every insurer will decline. The outcome depends on the reason for the refusal, the evidence available and the underwriting criteria of the insurer approached. A specialist provider may be able to consider circumstances that fall outside standard criteria.
It may be possible, but you should explain the cancellation accurately whenever an insurer asks. Obtain the reason and effective date from the previous insurer, correct any errors and provide supporting evidence. The reason for cancellation will influence which insurers can consider the risk.
You must answer the questions each insurer asks accurately and with reasonable care. Questions vary, so do not rely on what a previous insurer asked. If you are unsure whether an event falls within the wording of a question, ask the insurer or broker before submitting the application.
Your current cover will normally continue until the expiry date shown on the policy, subject to its terms. Ask why renewal is not being offered and start seeking replacement cover early. Do not let the existing policy expire until you understand when the new cover will begin.
No. A claim can be declined because the event falls outside the policy cover or an exclusion applies while the policy itself remains in force. Ask the insurer to confirm whether its decision relates only to the claim or also affects the policy.
In some circumstances an insurer may seek to avoid a policy following a qualifying misrepresentation. The available remedy depends on matters such as whether reasonable care was taken, whether the information affected the underwriting decision and whether the misrepresentation was careless, deliberate or reckless. If you believe the policy has been avoided unfairly, complain to the insurer and consider the Financial Ombudsman Service after the insurer has had the opportunity to respond.
Have the decision notice, reason and date available, together with your claims history and any documents relevant to the property risk. Depending on the circumstances, this may include surveys, repair evidence, renovation details, flood or subsidence reports, occupancy dates and payment records.
Start by confirming what decision was made and why. Once you have checked the information and gathered the relevant evidence, you will be in a better position to explain your circumstances and compare replacement cover.
If standard insurers cannot help, learn more about refused home insurance from Intelligent Insurance or speak to our UK-based team.
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