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Can you withdraw a home insurance claim?

Peter Terlato avatar
Peter Terlato
- 3 min read
Can you withdraw a home insurance claim?

Key highlights

  • You can often withdraw a home insurance claim without charges or hassles, but it's important to act quickly before a determination is made.
  • Contact your insurer immediately to cancel a claim, either through their online form or by speaking to a claims officer.
  • Withdrawing a claim may be documented on your insurer's records and could affect your policy status and future premiums. Review your charges during renewal to ensure no unexplained increases.
  • You can often withdraw a home insurance claim without charges or hassles, though there may be exceptions, such as if the claim has already progressed too far.

    If your home is damaged due to a fire or storm, your first thought may be to file a claim with your home insurer for the repair costs. But what happens if you change your mind and want to withdraw your request after the fact? 

    Some of the potential reasons you may want to retract your claim include:

    • The value of the repairs you’re claiming is less than your excess amount;
    • The damage you’re claiming repairs for is not as extensive as you first imagined;
    • You don’t want to lose or waste your no-claim bonus and risk higher premiums;
    • You’ve made multiple claims in the past few years, classifying you as high-risk customer, or;
    • The repairs you’re claiming aren’t covered in your policy e.g. wear and tear damage.

    To get a better idea of whether filing an insurance claim may be worthwhile, consider getting a repair estimate or quote for any damage to your home before making your claim.

    How to withdraw a home insurance claim

    If you want to cancel a recent claim you’ve made, the first thing to do would be to contact your insurer immediately. If you wait too long between a claim’s submission and cancellation, a determination may be made.

    To make your claim, you would have likely filled out an online claim form or submitted paperwork via post. Some insurers will have a separate online form or portal where you can amend, edit or cancel your claim. 

    It may also be sensible to phone your insurer and speak to a claims officer directly to expedite the withdrawal. Have any relevant information and your issued claim number handy (if you have one).

    What happens if I cancel a home insurance claim?

    If you act quickly, most insurers will be able to withdraw your claim without hassle. It’s unlikely that you’ll be charged a fee for this action, but check with your insurer to be certain.

    When you withdraw a claim, this activity may be documented on your insurer’s records and registered as a zero payout. If a determination, such as a rejection, is made before you cancel your claim, this could affect your policy status and future premiums.

    If you can’t withdraw your claim in time, you may be able to lodge an appeal, either with your home insurer or, if necessary, with the Australian Financial Complaints Authority (AFCA). Filing a formal appeal with AFCA will trigger a review of your denied claim. Be sure to include as much information as you can to support your situation.

    Additionally, when you receive your renewal policy, review your charges to ensure there aren’t any unexplained increases in your insurance rates because of your withdrawn claim.

    Before making any insurance claims, it’s important to understand what you’re covered for, your excess costs, and whether the repairs necessitate a claim. Check your policy’s product disclosure statement (PDS) for full details.

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    Product database updated 22 Jun, 2024

    This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.