insurance disclaimer

sinbad19

hopefully someone can give me advise on the following.

a couple of years ago i changed insurance companies for my building and contents. i got a very good deal.on filling the form online i completed everything asked. although i thought.there was a link attached( which i have only just found out now) that asks you if you are or ever been bankrupt.i genuinly didnt see this link and if i had i would have said i was discharged bankrupt a couple of months earlier.
forward 18 months and after going away for a few days returned home to find a pipe had frozen in the loft , split and water was seeping everywhere. The house was a total right off. a few days later the loss adjuster came and asked me questions , one was if anyone in the household had been bankrupt. i said yes that i had been , i also said i wasnt sure if it asked me on my original form as i would have told the truth if i was asked.
Since this my family and i have been put up in an hotel for alternative accomodation.the firms sent by the loss adjuster has taken nearly all the furniture, electrical items and other stuff that was in the house and written them off as water damaged. The rebuilding work has also started ( i was told at a cost of £40000) and walls and ceiling have been knocked down and the house internally is just like a building site. to be honest i have no complaints with the insurance company or loss ajusters . Ive read and heard bad stories about claims but i can honestly say i cant fault anyone and the work is speeding along and 'should 'be completed in 4 months.
Then i get a call from the loss adjusters saying the underwriters have queried the fact i did not disclose the fact i had previously been bankrupt.
does anyone know what could happen as im afraid incase they stop the claim and stop the work on the house. its totally unliveable, and now looks worse than it is and of couse all my families belongings have been taken away and destroyed.
thanks

Quentin

If they do "stop the claim" then you will need to get legal advice on how to proceed.

vusys1

you would have thought that the LA would have referred this straight away before claims approved any repair works?

if they do stop the claim, would they be liable to replace any of the items they have already removed and disposed of?

*Scarlett

The fact the the bankruptcy was discharged before you took the policy out is in your favour.

Companies have different policies on this eg some will require full payment for the policy upfront for customers with bankruptcy issues.

It will depend on whether your circumstances would have affected their acceptance of the policy when you first took it out, ie if they would have declined cover or imposed any terms as they considered you a higher risk.

One way to find out if the bankruptcy would affect your ability to obtain a policy would be to get a "dummy" quote from them disclosing the full details that applied at the time that you took out the insurance (you don't have to supply your real name or contact details - just use your correct postcode and property type).

Bear in mind that this might not be 100% accurate as underwriters often change their criteria on these issues and they might not be the same as when you took the policy out 18 months ago.

You could also have a look at this site for more information http://www.financial-ombudsman.org.uk/

Whist the error was obviously on your part for not disclosing this initially I understand that many people would not realise that bankruptcy would affect their insurance and I do hope that you get this sorted out. I'm sure it's a terrible worry and stress for you.

sinbad19

been told today from LA that because the insurance approved the work it wont be liable to me if claim stops (unless i didnt answer any questions honestly- but there were no questions).

my only fear is if they dont agree to contents being paid out . they have taken all furniture so wouldnt know what to do.

i thin insurance forms online need to be more user friendly. the site for asda doesnt directly ask you the question but there is an icon ( who reads them when you think its all straight forward). during my bankrupcy , which was stressfull enough i wasnt informed by anyone that there would be an issue with bankrupcy. if i had have been told i would have mentioned it as who wants to pay premiums to a policy you know wont payout.

thanks for all advise