How the Claims and Underwriting Exchange (CUE) impacts home insurance

What is the Claims and Underwriting Exchange (CUE)?

The Claims and Underwriting Exchange, often called the CUE database, is a secure, shared hub used by UK insurers. When you make a claim or apply for insurance, your details go on this register. It tracks both successful claims and applications that were declined, helping firms check your history across the industry.

It exists so everyone can assess risks more accurately and avoid surprises from hidden past issues like fraud or multiple claims.

How can the CUE database impact home insurance?

CUE gives insurers a clear window into your past, affecting everything from your home insurance quote to your cover:

1. Premiums

If you’ve made claims before, especially within the last few years, insurers typically raise your premium to offset the risk.

2. Cover terms

Expect to see higher excesses or certain situations excluded, e.g. subsidence or flooding based on your claim type.

3. Declined cover

In severe or repeated cases, insurers may refuse to offer you a policy at all.

Types of claims and their impact

• Storm, fire, theft – common claims, usually accepted but with cost implications.
• Subsidence or flood – high-risk situations; insurers often limit or exclude cover.
• Repeated or fraudulent claims – can lead to outright refusal to insure or inclusion in a special management pool.

How much can home insurance increase after a claim?

There’s no set rule, but here’s a sense of what can happen:

• Single minor claim: expect a 10–20% rise, depending on insurer.
• Multiple claims within short time: increases of 30% or more are possible.
• High-risk claims such as subsidence or flooding: the price hike can be even steeper or the insurer may avoid covering.

Always compare quotes after claiming, as prices and policy terms can vary significantly.

Do I need to inform my insurance provider of previous claims?

Yes, you need to accurately declare any past claims, typically within the last five years. If you don’t, insurers can:

• Cancel your policy
• Reject a current or future claim
• Apply hefty penalties

Even rejected claims count. If an insurer turned you down, that’s recorded too. It's worth being honest, otherwise you risk invalidating your home insurance.

How to find the right home insurance policy with previous claims

1. Be upfront: mention all past claims and declines.
2. Shop around: insurers vary in how they treat past claims.
3. Check the excess and exclusions: make sure your policy properly manages any risk flagged by your history.
4. Manage risk: fix underlying issues, like insulation or security, to show insurers you’re less likely to claim again.
5. Consider specialist insurers: for complicated histories e.g. subsidence, these might offer better terms.

If you haven't previously made a claim you may benefit from a no-claims discount on your home insurance.