Meet the uninsurables left without protection
Sometimes the cost of insurance can make it almost impossible to take out any cover. Samantha Downes looks at what makes someone – or something – 'uninsurable'
Saturday 03 May 2014
The UK insurance industry is the third largest in the world, with London acting as a global centre where anything and everything is insurable.
In the last couple of decades buying insurance has become as cheap – if not cheaper than – a pint of milk, with even life insurers now offering off-the-peg cover from as little as £5 a month.
Insurers have been able to offer cheaper insurance premiums largely by streamlining the underwriting process. Although technology has helped, this improvement has come at a price.
Westley Pearson, a claims manager at the specialist pet insurer Animal Friends, explained how tick-box underwriting meant that those with unusual or irregular circumstances were more likely to fall out of the net. He said: "To offer cheap insurance, companies have to have standard cover terms – it's a simple as that."
Those who have trouble getting insurance include older travellers. With more over-50s taking gap years or long-haul trips, the number of insurers wanting to cover them has grown.
However, for those who come in a couple of decades older, getting insurance can be a problem.
Angus Howe, a 78-year-old retired engineer, and his 75-year old wife, Jeanette, have been holidaying annually in Florida, renting a villa with friends, since the mid-1980s, nearly 30 years. Mr Howe said: "Last year, when I went to get an insurance quote, I was told it would cost at least £3,000 to insure us. It normally costs around £300."
The reasons for the hike were obvious. Mr Howe had been fitted with a pacemaker and had received treatment for bladder cancer.
"I had these conditions but they were undiagnosed, possibly for years, when we were travelling. The cancer is in remission and the pacemaker is checked every few months and it hasn't been used, which means the heart condition I had it fitted for hasn't reappeared. I'm actually healthier because I get a full MRI scan."
Other elderly travellers The Independent spoke to complained of similar treatment by insurers.
One 87-year-old woman suddenly found her premiums went up to £4,000.
She said: "I'm in good health and haven't had any long-term issues. My age simply seems to be a problem."
Another lady, who was 80, wanted to travel Down Under and was quoted the same amount, even though, she said: "I've not been ill."
Both women are distraught that they can no longer travel abroad without paying a premium equivalent to buying a small car.
Nevertheless, Mr Pearson believes that anything is insurable, and advises people to shop around. "The best thing these people can do is to look for a specialist insurer.The man with the heart complaint should go through the British Heart Foundation, which has a list of insurers who will be aware of his condition and be able to price his cover more appropriately."
The elderly are the most obvious uninsurables, but what else can preclude people – and things – from getting cover?
The cost of the average private comprehensive motor insurance policy may have fallen – by 9 per cent during 2013 compared to 2012, according to the Association of British Insurers – but there are still plenty of people who find their premiums are rising.
If you are a student or a tree surgeon, you will find your premiums are higher. While there are no "uninsurable" professions, having a top-of-the-range motor will also affect how much you pay.
The most expensive cars to insure include a Lamborghini Aventador LP700-4 V12, a Ferrari 458 Italia, an Aston Martin DB9, and a Bentley Continental.
Where you live also counts, with the postcodes B19, SE14, E7 and B12 – in London and Birmingham – attracting the priciest premiums.
So a tree surgeon with an Aston Martin living in New Cross, just outside the City of London, may just find their car is uninsurable.
Julie Daniels, of the insurance comparison website Compare the Market, said: "We recommend that consumers shop around for the best deals on their insurance – this is particularly important if you are in an occupation that insurers deem to be risky.
"Workers that use heavy duty or dangerous equipment such as mechanics, tree surgeons or track workers should be aware that they fall under this bracket and therefore it is especially important that they hunt around for the most competitive rates."
Cars like the Lamborghini Aventador are potentially uninsurable
Life and medical insurance
Critical illness (CI) cover has been a focus of complaints as to "uninsurablility". It is an insurance which pays out a lump sum if the insured is diagnosed with a long-term illness.
You can be refused critical illness cover if you have a hereditary or existing illness that makes a claim almost inevitable. For example, if you are an alcoholic who continues to drink, or someone with the BRAC1 and BRAC2 breast-cancer genes.
Income protection, which offers a monthly payment to cover bills and or mortgage payments if you lose your job because of illness or injury, also has provisos.
You can be refused cover if you work in an occupation deemed too high a risk, for example being a member of the armed forces, the fire service or being a professional sportsperson.
Other uninsurables include those who travel to areas of the world where there is a high risk of conflict and/or disease for work.
Emma Thomson, of the life-insurance broker Life Search, said: "A consultant in the oil industry who travels to Nigeria for work will be declined by many insurers. Another example is someone who is significantly overweight, for example with a BMI of over 45. They would be declined cover because of the associated health risks of being obese."
She said people can be declined cover for a range of reasons including health, travel, residency and occupation; essentially if the insurer believes the chances of claiming on the policy are too high.
"Not all insurers have the same approach, so it is worth shopping around, and there are specialist firms, such as Lloyd's syndicates, which might offer cover to clients who have previously been turned down by the mainstream insurers, so they are worth a try too," she added.
The good news is that pet insurance is pretty inclusive.
In 2013 pet insurers paid out £478m, or £1.3m each day, to cover veterinary bills.
According to the Association of British Insurers (ABI), the cost of treating a dog injured in a road-traffic accident is £674, and £300 for a cat. An overnight stay at a vets can cost £675 for a dog and £300 for a cat.
Payouts include treating a dog for injuries sustained when he got impaled on a fence while chasing a cat, removing a marker pen swallowed by a dog, removing a mouth tumour from a hedgehog, and treating a ferret with heart disease.
Mr Pearson said even elderly pets can get cover.
"Pet insurance is probably the most-inclusive insurance, but for some it is still a luxury, especially when household costs elsewhere are rising.
"The only unisurables in terms of pet insurance would be dangerous dog breeds or endangered animals, but people are not meant to keep these as pets anyway."
Home contents and buildings insurance offer peace of mind to most homeowners and tenants.
The increase in widespread flooding has prompted the insurance industry to offer reassurance to homeowners, meaning that even living in an area liable to flood should not make homes there uninsurable.
Last autumn the ABI and the Government agreed a memorandum of understanding on a not-for-profit scheme called Flood Re, which would ensure that flood insurance remains affordable and available.
Simon Douglas of AA Insurance said very few homes are "uninsurable".
"The home-insurance market is very competitive, but its profitability is dependent on severe weather, floods, freezes and subsidence," he said.
"Insurers don't change their rates as regularly or as frequently as they do for motor, so premium movements tend to be more stable.
"It would take widespread, severe weather damage to trigger a rapid change in rates across the market. I don't believe we'll see much pressure on premiums until and unless that happens."
If you have problems finding insurance you can contact the British Insurance Brokers' Association's "Find a Broker" service. The service can help find specialist insurers who can offer specific types of cover based on factors such as age and medical condition.
Phone 0870 950 1790 or visit their website at biba.org.uk
Simon Read: Frozen in time - the expat British pensioners who deserve a better deal
Donald MacInnes: My wasted hours in the retail deserts of Dixons-Carphone
Pension firms must ask consumers more questions, says City Watchdog
Money Insider: Smart alternatives to the pensioner bond
Number of serially under-performing investment funds has increased by a fifth, survey reveals
- 1 Double chins could be 'cured' without surgery or dieting using new injection
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 4 Christian blogger says she will not wear leggings in public because they entice men and cause them to look at her 'lustfully'
- 5 Thank heavens for Louise Mensch and her foul-mouthed tweets to world leaders
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Day In a Page
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village