Uninsured losses are costs you have to cover yourself because they fall outside the protection of your insurance policy. These can include anything from the policy excess to items your insurer excludes, losses above your cover limits, or even delays or legal costs that aren’t included in your policy.
Understanding uninsured losses helps you prepare financially, avoid surprises, and know when recovery might be possible.
Examples of uninsured losses
Here are typical examples of uninsured losses that may not be covered by your home or landlord insurance:
| Type of Cost | Example |
| Excess | You must pay the first £350 of a claim |
| Wear and tear | Gradual damage or lack of maintenance (e.g. an old boiler failing) |
| Undeclared items | High-value jewellery not listed on your policy |
| Cover limits exceeded | Loss of rent beyond your insurer’s time limit |
| Excluded events | Flood or subsidence not included in your policy |
| Legal expenses | Taking action against a builder or neighbour without cover |
| Consequential losses | Business delays or accommodation costs not listed in your policy |
Recovery of uninsured losses: When it’s possible
You may be able to recover uninsured losses if:
- The loss was caused by someone else’s negligence
- You can prove the cost and value of what’s lost
- Legal action or negotiation is supported by evidence
For example:
A neighbour’s burst pipe floods your property. Your own insurer covers most of the damage, but you’re left paying the £500 excess and costs for temporary accommodation. With legal assistance, you may be able to claim these back from the neighbour or their insurer.
Claiming for uninsured losses
While your own insurer won’t pay for costs outside your policy, you may still be able to recover them, especially if someone else is to blame.
Here’s how:
1. Check if you have Uninsured Loss Recovery or Legal Expenses Cover
This add-on can help pay for the legal help (Legal Expenses Cover) needed to pursue your claim.
2. Gather evidence
This includes receipts, photographs, expert reports, and a record of the loss or damage.
3. Pursue a third-party claim
If a third-party like a contractor, tenant, neighbour or supplier is responsible, you may be able to claim from their insurance.
4. Get expert help
A Loss Assessor can help negotiate or escalate your case if you’re struggling to recover the cost.
What is uninsured loss recovery?
Uninsured Loss Recovery (ULR) is a service that helps you recover losses your insurer won’t pay for, usually from a third party who was responsible for the damage. It’s sometimes included with legal expenses cover, or offered as a standalone add-on.
ULR can help you reclaim things like:
- Your insurance excess
- Lost rent or business income
- Repair costs not covered by your policy
- Legal fees if you need to pursue someone at fault
Do I need uninsured loss recovery?
Whether or not ULR is worth having depends on your situation, but for many homeowners, landlords, and small businesses, it offers valuable protection against unexpected out-of-pocket costs.
ULR may be worth it if:
- You want to reclaim your excess in the event of a third-party claim
- You rely on rental or business income and can’t afford to lose it
- You don’t want to risk legal costs pursuing someone else for damages
- You’ve had disputes before (e.g. with neighbours, tenants, or contractors)
- You live in a shared building, where damage could spread from neighbouring properties
ULR might be less useful if:
- Your policy already covers all your likely risks with generous limits
- You have legal expenses cover that includes ULR
- You’re confident managing third-party disputes or legal processes yourself
FAQ’s
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What’s the difference between insured and uninsured losses?
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- Insured losses are covered by your policy.
- Uninsured losses are not. You pay unless you can recover them from someone else.
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Can I claim back my excess?
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Not from your insurer, but if someone else caused the damage, you may be able to recover it from them with ULR or legal help.
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What happens if my insurer wrongly denies part of my claim?
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You can dispute it. First raise a formal complaint with your insurer. If unresolved, escalate to the Financial Ombudsman Service, or seek support from a Loss Assessor.
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Will legal expenses insurance help with uninsured losses?
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Yes, if your policy includes legal cover, it may help fund recovery of uninsured losses through negotiation or legal action.
