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“Should I tell the insurer about....?”
The Importance of “Disclosure”
The insurance contract between you the insured and the insurance company is built on the information given by you to the insurer. You the insured have the responsibility to disclose to the insurance company all the information that you are aware of or are expected to be aware of that may affect the insurance company’s decision to accept your risk or not.
Matters like previous claims, criminal conviction, absence of fire prevention, etc may increase the likelihood of another claim and should be disclosed to the insurer.
Some businesses asked us what type of information they should disclose. When the information is likely to lead to a reduction in premium, you will have no hesitation disclosing it. On the same token, when you think the information will lead to an increase in premium, you better disclose it too.
Failure to fully disclose may lead to the insurer rejecting a claim which, ultimately, is what you buy the insurance for.
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