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Guildhall Insurance Brokers
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Insurance FAQ

Insurance FAQ

  • Q: What do I need to disclose at the renewal of the policy?
  • A: At renewal the duty of disclosure is reviewed and you should inform the insurers of any changes in circumstances and material facts. So please review the information given on your original proposal at time of renewal. Please also keep a written record of all disclosures made. It is not good practice to rely on telephone calls as if a claim is rejected you would need to produce evidence that you had made further disclosure.
  • Q: What is the 'Duty of Disclosure'?
  • A: You, as the Proposer, have a duty to disclose all material facts both before and during the contract of insurance. If you do not make full disclosure you simply will not have full insurance. This duty starts when you first complete a proposal form and carries on throughout the term of the policy. So if your circumstances change you must inform your insurers (or if you buy your insurance through us, then you must let us know so we can inform the insurers on your behalf). Examples would include: moving home, having builders work in your home, being convicted of an offence and even having someone convicted of an offence come and live with you. These examples are not exhaustive, so to be safe it is always better to advise insurers than have a policy cancelled at the time of claim.
  • Q: What does 'utmost good faith' mean?
  • A: In entering into an insurance contract both the insurer and you as the proposer must observe the principle of 'utmost good faith'. This means that you must disclose all material facts before the contract of insurance is completed (ie before you pay for the insurance). If you do not observe the principle of 'utmost good faith' and observe your duty to disclose all material facts implicit in all your negotiations for the insurance then your policy will be void. You may have the paperwork and paid the premium but your policy will be invalid and any claim you have made will not be paid. So please make sure you make full and complete disclosure of all material facts relating to your insurance policy if you want your claim to be paid.
  • Q: What is a 'material fact'?
  • A: A material fact is anything which might influence a prudent insurer whether to accept your proposal form and enter into an insurance contract with you.
  • Q: What are the consequences of non-disclosure of a material fact?
  • A: Simply, your policy is likely to be cancelled - often without a refund - with effect from the day the policy was taken out. It would be as if you had never taken the policy out in the first place. If your policy is cancelled for non-disclosure or any other reason you must be sure to disclose the fact of this cancellation on any proposal form you subsequently submit to an insurer. The consequences of non-disclosure are serious and could prevent your obtaining insurance in the future.
  • Q: Do I have to make further disclosure when I add something to my policy?
  • A: Yes. There is generally a continuing obligation to disclose all material facts throughout the life of a policy. For example, if you are convicted of an offence and forget to tell the insurer than the policy would be invalidated and any claim you might make would not be paid. If you purchased an additional item of jewellery and added it to your policy and failed at that time to mention something which was a material fact (such as a teenage child acquiring a conviction) then that would invalidate your policy too.