Non-Disclosure and Misrepresentation – Why Insurers Decline Claims

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Non-Disclosure and Misrepresentation – Why Insurers Decline Claims

One of the most frustrating experiences for landlords is having an insurance claim declined. In many cases, the reason is non-disclosure or misrepresentation at the point of purchase or renewal. Put simply, insurers expect you to provide accurate information about the risk. If key facts are omitted or misstated, they may reduce a payout or refuse it altogether. This article explains what landlords need to disclose, common pitfalls, and how to avoid problems.

What Is Non-Disclosure?

Non-disclosure occurs when a landlord fails to tell the insurer something that could affect their decision to offer cover or the price charged. Even if unintentional, it can still void a claim.

Examples include:

• Not declaring that a property is an HMO.
• Failing to mention past claims or subsidence history.
• Not disclosing tenancy types (e.g. students, DSS, asylum seekers) if specifically asked.
• Leaving out building works or major refurbishments.

What Is Misrepresentation?

Misrepresentation is providing information that is false or misleading. This can be deliberate, careless, or even accidental.

Examples include:

• Stating that the property is occupied when it is vacant.
• Declaring that all certificates (gas, electrics, alarms) are in place when they are not.
• Claiming there are no trees nearby when they are within influencing distance.

The Insurance Act 2015 – Duty of Fair Presentation

Since 2015, landlords have been bound by the Insurance Act 2015, which requires a “fair presentation of the risk”. This means:

• Disclosing every material circumstance you know or ought to know.
• Presenting information clearly and accessibly.
• Not withholding details a prudent insurer would want to know.

If you fail in this duty, insurers have proportionate remedies:

• If deliberate/reckless – the policy can be voided with no refund.
• If careless – claims may be reduced proportionately or excesses increased.
• If innocent – claims should still be paid, but disputes may arise.

Common Pitfalls for Landlords

• Assuming “they didn’t ask, so it doesn’t matter” – material facts should be disclosed even if not asked directly.
• Relying on memory – forgetting old claims, prior works, or subsidence can still count as non-disclosure.
• Not updating changes – converting to an HMO, new tenants, or property refurbishments must be notified at once.
• Failing to read policy documents – many landlords don’t check the statement of fact they agree to at inception.

How to Protect Your Claims

• Keep a risk file for each property: certificates, licences, inspections, claims history.
• Declare all material facts – even if you are unsure whether they matter.
• Update your insurer promptly if something changes during the policy term.
• Check your statement of fact at each renewal – correct errors before cover incepts.
• Use a specialist landlord broker who understands property nuances and can frame disclosures correctly.

Case Example

A landlord submitted a claim for malicious damage after tenants vandalised a property. The insurer declined because the property had been converted into an HMO without notification. Although the landlord argued the change had only recently occurred, the insurer classed it as material non-disclosure. The claim was rejected, and the landlord had to pay for repairs themselves. The lesson: always disclose material changes as soon as they happen.

Final Thoughts

Most declined landlord insurance claims could have been avoided with accurate disclosure. The Insurance Act 2015 gives insurers proportionate remedies, but the safest route is full transparency. Treat disclosure as part of risk management, and you will avoid the most common reason for declined claims.

Request your quote or call-back

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

Alternatively, you can use the form below to request one of our team to give you a call back.

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Publication date: Tuesday 30 December 2025

The post Non-Disclosure and Misrepresentation – Why Insurers Decline Claims appeared first on Property118.

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