Claims boost home insurance costs

Making claims on home insurance policies could have a detrimental effect when it comes to taking out cover later on, one website has warned.

Lovemoney.com said that the more claims are made, the more likely it is that a home insurance provider will perceive a greater risk, leading to high premiums.

The website cited the story of one of its members, who decided to claim after she lost her keys - believing that she should get her money's worth.

But shortly after, the householder was burgled twice in 18 months and had to claim again and when it came to renew the cheapest home insurance policy she could find was for £700, double what she was previously paying.

Each time you make a claim, your insurer puts a strike against your name. Warning bells … start to go off if a prospective customer has made three claims in the last three years, the website said.

Aviva recently warned that the increased use of candles and cooking equipment at Christmas can cause greater risk of fire and could lead to home insurance customers having to make a claim.