Non-Disclosure and Misrepresentation – Why Insurers Decline Claims

Many landlord insurance claims are declined due to issues of non-disclosure or misrepresentation at the point of policy purchase or renewal. Understanding what information must be disclosed and how to avoid common pitfalls is crucial for UK landlords to ensure claims are not refused. This article outlines the key responsibilities landlords have under the Insurance Act 2015 and practical steps to protect insurance claims.

Understanding Non-Disclosure in Landlord Insurance

Non-disclosure occurs when a landlord fails to inform the insurer of facts that could influence the insurer’s decision to provide cover or the premium charged. This can happen unintentionally but still results in claims being voided. Examples relevant to landlords include not declaring that a property is a House in Multiple Occupation (HMO), omitting past claims or subsidence history, failing to disclose tenancy types such as students or DSS tenants when asked, or not mentioning recent building works or major refurbishments.

What Constitutes Misrepresentation?

Misrepresentation involves providing false or misleading information to the insurer, whether deliberately, carelessly, or accidentally. For landlords, this might include stating a property is occupied when it is vacant, claiming all safety certificates (gas, electrical, alarms) are in place when they are not, or denying the presence of nearby trees that could affect the property.

The Insurance Act 2015 and the Duty of Fair Presentation

Since the introduction of the Insurance Act 2015, landlords must comply with a “duty of fair presentation” when applying for or renewing insurance. This duty requires landlords to disclose every material circumstance they know or ought to know, present information clearly and accessibly, and not withhold details a prudent insurer would want to know.

If this duty is breached, insurers have proportionate remedies depending on the nature of the breach:

• If the breach is deliberate or reckless, the insurer may void the policy without refund.
• If the breach is careless, claims may be reduced proportionately or excesses increased.
• If the breach is innocent, claims should still be paid, though disputes may arise.

Common Disclosure Pitfalls for UK Landlords

Landlords often make mistakes that lead to non-disclosure or misrepresentation, including:

• Assuming that if the insurer does not ask directly, certain material facts do not need to be disclosed.
• Relying on memory and forgetting to disclose previous claims, subsidence issues, or prior building works.
• Failing to notify insurers promptly of changes such as converting a property to an HMO, new tenancy types, or refurbishments.
• Not thoroughly reading or checking the statement of fact documents provided at policy inception or renewal.

Protecting Your Landlord Insurance Claims

To minimise the risk of declined claims, landlords should adopt the following practices:

• Maintain a comprehensive risk file for each property, including certificates, licences, inspection reports, and claims history.
• Declare all material facts honestly, even if uncertain whether they are relevant.
• Inform the insurer immediately of any changes during the policy term.
• Review and verify the accuracy of the statement of fact at each renewal, correcting any errors before the policy starts.
• Consider using a specialist landlord insurance broker who understands property-specific risks and can assist with accurate disclosures.

Case Example: The Consequences of Non-Disclosure

A landlord submitted a claim for malicious damage after tenants vandalised a property. The insurer declined the claim because the property had been converted into an HMO without notification. Although the landlord argued the change was recent, the insurer deemed this a material non-disclosure and rejected the claim. The landlord was left to cover repair costs personally. This case emphasises the importance of promptly disclosing material changes to insurers.

Conclusion

Accurate and full disclosure is essential for UK landlords to avoid declined insurance claims. The Insurance Act 2015 provides insurers with proportionate remedies for breaches, but the best approach remains transparency and careful risk management. By understanding their obligations and maintaining clear communication with insurers, landlords can better protect their insurance cover and financial interests.

Upcoming TLA Initiative

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.