When arranging consumer insurance, it is important to answer the insurer’s questions carefully and accurately. Incorrect or incomplete information can sometimes affect the policy or a later claim.
The relevant legislation is the Consumer Insurance (Disclosure and Representations) Act 2012, commonly known as CIDRA. It requires consumers to take reasonable care not to make a misrepresentation when answering an insurer’s questions.
In this podcast, Michael Williamson discusses why accurate information matters, how insurers may respond if information is later found to be incorrect and what policyholders should consider if misrepresentation is raised during a claim.
Misrepresentation can have important consequences, but the outcome depends on the circumstances.
Under CIDRA, a consumer must take reasonable care not to make a misrepresentation when answering questions asked by the insurer. If incorrect or incomplete information is later identified, the insurer must consider whether it amounted to a qualifying misrepresentation and what it would have done if the correct information had been provided.
The possible response can vary. Depending on the circumstances, the insurer may apply different terms, settle an eligible claim proportionately or, in some cases, avoid the policy.
When a consumer buys or renews insurance, CIDRA requires them to take reasonable care when answering the insurer’s questions.
The insurer’s questions should also be clear and specific. If a question is unclear, that can be relevant when deciding whether the consumer took reasonable care in answering it.
If you are unsure of an important answer, it is sensible to check the information rather than guess. However, consumers are not automatically expected to volunteer every fact that might possibly interest an insurer. The focus is primarily on answering the questions asked with reasonable care.
If an insurer believes information provided when the policy was arranged was incorrect or incomplete, it should consider the circumstances under CIDRA before deciding what action is available.
Where a qualifying misrepresentation was careless, the remedy generally reflects what the insurer would have done if the correct information had been provided. For example, it may apply different terms, settle an eligible claim proportionately or avoid the policy if it would not have offered cover at all.
If a qualifying misrepresentation was deliberate or reckless, stronger remedies may be available to the insurer, including avoiding the policy and refusing an associated claim.
For example, a disagreement about the number of bedrooms in a property should not automatically mean that a claim fails. The insurer would need to consider what question was asked, whether the answer was incorrect, whether reasonable care was taken and what difference the correct information would have made to its underwriting decision.
When arranging or renewing consumer insurance, take reasonable care when answering the questions you are asked.
Accurate answers are important, but an innocent mistake does not automatically mean that an insurer can avoid the policy. The legal position depends on the circumstances and the remedies available under CIDRA.
CIDRA provides the legal framework for pre-contract misrepresentation in consumer insurance. Its central requirement is that consumers take reasonable care not to make a misrepresentation when answering an insurer’s questions.
If incorrect information later becomes an issue, the consequences are not automatic. The insurer should consider the question asked, the answer given, the care taken by the consumer, whether the information affected its underwriting decision and the remedy available under the legislation.
If you are buying insurance for a business rather than as a consumer, different rules can apply. Non-consumer insurance is generally subject to the duty of fair presentation under the Insurance Act 2015.
If an insurer raises misrepresentation or non-disclosure during an existing property insurance claim, it is important to understand exactly what information is disputed and why the insurer considers it relevant.
Depending on the claim, Independent Loss Adjusters may be able to review the insurer’s stated position, relevant policy documents, claim evidence and the information provided when the policy was arranged or renewed.
We can also help identify questions that may require clarification, such as what the insurer originally asked, what answer was recorded and how the insurer says the correct information would have affected its underwriting decision.
ILA provides insurance-claim support rather than legal representation. Where specialist legal advice on CIDRA, the Insurance Act 2015 or another legal issue is required, an appropriately qualified legal professional may also need to be involved.
Professional claim support does not guarantee that a misrepresentation decision will be overturned or that a claim will be paid. The outcome will depend on the legislation, policy wording, evidence and circumstances.
Our Insurance Claims Management page explains ILA’s service, scope and applicable fees in more detail.
What Our Clients Say After Working With ILA
When your property claim feels uncertain, it can help to hear from people who have already been through the process. These testimonials show how Independent Loss Adjusters has helped clients deal with insurers, evidence, delays, settlement concerns and the practical steps needed to move a claim forward.
“The insurer was being a nightmare and dragged the case on for months, but in the end, with Glenn’s help and guidance, we received the payout needed to rectify the damage. Without Glenn, we would have only received 20% of the actual costs to restore the damage!”
“Glenn and Sue have been fantastic throughout our claim. Although it has been a very stressful period, it has been relatively easy to communicate with Glenn or Sue, who have always reassured me as time went on. Above all, we are very happy with the total outcome of our claim and can highly recommend ILA.”
“Mike and his team are an essential if you have to make a claim against your insurance. I have engaged ILA on a number of occasions and they have delivered every time.”
“From the very beginning, they demonstrated exceptional professionalism, in-depth industry knowledge, and genuine care for my situation. Their attention to detail and persistence resulted in a settlement that was both fair and far more comprehensive than I could have achieved alone.”
“Michael dealt with our case in such a very professional manner, providing excellent advice and valued assistance. What really mattered here was Michael had a real connection to us, offering true empathy to our case and real sincere desire to help us to the best of his ability.”
“We were really struggling with our insurance claim until we decided to use ILA. Glen and Sue took charge of the claim and took the worry away from us. Thank you both for your help and support throughout the process.”
These testimonials describe individual clients’ experiences. Outcomes depend on the policy wording, evidence and circumstances of each claim.
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Explore Common Claim Problems
Understand the difference between insurer-appointed and independent loss adjusters, what each role involves and when independent claim support may be appropriate.
Loss Adjuster Guides
Practical guidance on preparing, documenting and progressing an insurance claim, including what to do when questions, delays or disputes arise.
Making a Claim Guides
Clear explanations of common insurance terms, policy wording and claims terminology to help you understand correspondence, decisions and the claims process.
Insurance Terminology GuidesCLEAR, PROFESSIONAL CLAIM SUPPORT
A difficult claim often involves policy wording, technical evidence, repair costs and several parties. Our Loss Adjusters help policyholders understand the position and approach the next step with clearer information.
ILA is appointed by homeowners, landlords and businesses, not by the insurer handling their claim.
Our team brings experience across insurance claims, loss adjusting, damage assessment and settlement review.
We review the policy, correspondence and available evidence before explaining what appears clear and what may need further work.
Our regulated status supports clear information, appropriate conduct and fair treatment throughout the customer journey.
Independent Loss Adjusters Ltd is authorised and regulated by the Financial Conduct Authority for insurance distribution activities.
Tell us what has happened and where the claim currently stands. We will review the initial information and explain whether ILA may be able to help.
Every claim depends on its individual circumstances, supporting evidence and policy wording. No particular outcome can be guaranteed.
PROPERTY DAMAGE CLAIMS
Different types of damage bring different questions about evidence, repairs and cover. Choose the claim type below to see how ILA may be able to help.
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We review the damage, repair scope and reinstatement costs to help you understand the claim position.
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We assess the interruption, financial records and policy position when insured damage affects trading.
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We review the damage, circumstances and evidence after vandalism or deliberate damage.
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Tell us what happened and where your claim stands. The initial conversation is free and without obligation. We’ll ask a few questions and explain whether ILA may be able to help. You can call us or complete the form; we’ll contact you using the details you provide.
If you choose ongoing support, we’ll explain the service and fee before work begins. Our general fee is 10% plus VAT of the overall settlement. Where you appoint ILA’s recommended contractors for the agreed reinstatement works, our fee is generally covered through that contractor route. The position depends on your claim and the proposed work.
What Happens After You Request a Callback?
When we speak, we’ll ask a few initial questions about the damage, your insurance policy and the current position of your claim.
You don’t need to have every document ready. The first conversation is simply to understand what has happened and whether we may be able to help.
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