A recent study has found that roughly 3.1 million home insurance policyholders in the UK could have their coverage cancelled due to simple mistakes. Over the past year, about 7% admitted to actions that could invalidate their policy, leaving millions potentially unprotected when they need it most.
The research, conducted by Go.Compare home insurance and applied to ONS data, identified the key reasons policies may be cancelled. These include missing payments, failing to provide accurate information, or not keeping insurers updated about changes in the property or household.
The most common error is neglecting home maintenance, with just under 4% of policyholders admitting to falling behind on essential tasks. Insurers require properties to be well-maintained and may cancel policies if a home is not properly looked after.
Other mistakes reported by policyholders include:
1.19% did not inform their insurer about property damage
1.15% failed to report home improvement work
1.01% did not notify insurers of a change in circumstances, such as a new job or occupant
0.23% either did not provide all the necessary information or missed some payments
Despite these mistakes, most policyholders are aware of the potential consequences. Over three-quarters (78%) admit to knowingly doing something that could lead to cancellation, representing about 2.4 million people nationwide. In contrast, just under a quarter (22%) were unaware that their actions could put their insurance at risk, equal to around 693,575 policyholders.
Go.Compare also highlighted the long-term financial effects of having a policy cancelled. Some insurers ask about previous cancellations when calculating premiums, and the results show that costs nearly double for those with a prior cancellation.
Combined buildings and contents cover: median price rises from £230 to £449
Buildings-only cover: median price rises from £205 to £450
Contents-only cover: median price rises from £65 to £133
“Insurance policies often require certain conditions to be met to remain valid," explained Nathan Blackler, home insurance expert at Go.Compare. "So, in some instances, insurers can reject a claim or cancel your policy altogether, and you would have to cover any costs yourself. Yet, many policyholders are knowingly taking this risk.
He added, “If your policy is cancelled, you’ll likely see higher insurance costs in the future, so it’s critical you do what you can to ensure your cover remains valid. For example, regularly check that all the information is up to date. Every policy is different, so make sure you familiarise yourself with the conditions and exclusions so you’re aware of any restrictions that apply to you.
“Keep your policy documents safe so that you can check them when you need to, and make a note of the key points if it helps. This way, you can be sure that you know how to keep it valid and avoid any unwanted costs in the future.”
