Home insurers refuse to quote after large previous claims

A survey by Ireland’s Financial Regulator found half of insurance companies are refusing to cover householders who have made a previous home insurance claim, the Irish Independent reports.

One householder who had made a claim for €8,000 after a fire in 2007 was unable to get insurance renewal quotes from FBD, Aviva, ChartisDirect and Lloyds selling through Getcover.com.

Householders affected by the recent floods were finding it impossible to switch to another insurer or were forced to accept an excess.

Flood defences

Insurers also ask flood-hit householders to detail changes they have made to reduce the risk of future floods.

The regulator warned: "Consumers with a previous claims history may find it more difficult to get their insurance renewed.

Chief executive of the Consumers Association Dermott Jewell said: “This smacks of protectionism because, by refusing to quote someone who has made a previous claim, insurance companies are forcing consumers to stay with their existing insurer so they can recoup some of the money that was claimed."

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