Bankrupt friendly home insurers

4$£&*(£$&*(!

wildheart83 wrote: »

The threads on home insurance have got me very worried indeed. When I was considering bankruptcy last year, the first question I asked CAB was will it affect my parents, with whom I live.

I was told that it would not affect them at all, unless I had a financial link to them, which I don't.

Only now, 10 months into bankruptcy have I found out that it will affect them, potentially very seriously, if they were to make a claim on their insurance.

I am thinking now that my only option is to move out of their home asap, so that I don't have to tell them that their insurance may not be valid, and more importantly, why.

This is not a well known issue, yet I have been campaigning for almost two years to raise awareness and attempt to change things.

Do they know you have been bankrupt? You need to read the policy documents to find out if your insurer requires a declaration of bankruptcy. Not all of them do, but a surprisingly large number will require such a declaration.

If they are not aware of your bankruptcy you will probably have to bite the bullet and tell them, then get them to phone their insurer. Hopefully the insurer will say there are no problems, but the insurer needs to know. I would hate to think the first they know about your bankruptcy is an invalidated insurance claim.

There are competitive companies out there but you have to find them - hence the reason for this thread.

dojoman

Go compare website actually asks if anyone in the property is or has been BR, this is the only one I know that specifically asks you that question.

wildheart83

Hi CitySlicker, no they don't know about the BR, and like you say, I'd hate for them to find out that way. That was the whole point of me specifically asking the CAB the question of whether I would need to tell my parents, or would my BR affect them as I didn't want them to be penalised for my stupidity.

The main reason I moved in with them was so that I could help them with bills etc - why pay a stranger's mortgage by renting when I could be helping my own family with theirs. Now it looks like I'll have to move out to save them the embarrassment of finding out that the insurance they've been paying for the last 10 months is invalid.

4$£&*(£$&*(!

wildheart83 wrote: »

Hi CitySlicker, no they don't know about the BR, and like you say, I'd hate for them to find out that way. That was the whole point of me specifically asking the CAB the question of whether I would need to tell my parents, or would my BR affect them as I didn't want them to be penalised for my stupidity.

The main reason I moved in with them was so that I could help them with bills etc - why pay a stranger's mortgage by renting when I could be helping my own family with theirs. Now it looks like I'll have to move out to save them the embarrassment of finding out that the insurance they've been paying for the last 10 months is invalid.

They're your parents, they will love you and although the news might come as a shock at first just get it over with, tell them without thinking 'shall I, shan't I', get it off your chest. Then tell them you have read this thread and it might be a good idea for them to call their insurer to check all is okay.

I am sure they appreciate your help, they will say there is nothing to be embarrassed about, and you will wonder why you was worried about telling them.

SurreyLass1

Or, tell them, and make an offer of paying the increase in any premium to ensure cover ........... or offer to handle finding suitable alternative insurance on their behalf, so that it doesnt cause any additional work or stress from their point of view.

Believe it or not, our loved ones love us. Full stop. - My husband had no idea about my debts until I dropped the bombshell and told him I had been advised to declare myself bankrupt. I thought that was going to be the end of my marriage. It isnt, and actually, we are probably more 'together' now than ever. Parents are designed to love their children - this isnt going to end their world, if anything, they may feel sad that you havent confided in them and they havent been able to help you through this.

Tell them, and then get on with the job of sorting the insurance. At least they havent had to make a claim, so no harm has been done.

wildheart83

I'm very lucky in that I have somewhere else to move to, where I won't need to go through a letting agency or have to pay rent upfront, so in all honesty this is my best way forward.

There are other things going on that make sure that there is no way on this earth I can tell any of my family that I am BR.

I do appreciate your advice, but unfortunately it doesn't work like that in my family, and their love is most definitely conditional I'm afraid. I've been lucky that I found this site and also CAG, as well as having some good friends around me, otherwise I don't know what I would have done.
I have 8 weeks to go before discharge, so if I can hold it together til that point I can then use AD as the start of my new life

nuttyp

Wildheart83 your not alone, both me and OH are BR. My mum and late dad knew, but his family know nothing. Have no intention of telling them. They think we are "doing well" as we have no bills. The true fact is we were declared BR and all our loans, cc and other debts were gone. Learned hard by the mistake and have kept the secret for a good while now. My true friends have no problem with it, and appreciate i like the frugal life - have an isa with savings!!

Hope all goes well for you..

wildheart83

You do feel terrible for keeping secrets from those who are close to you, and I think my parents have their suspicions that something isn't quite right - i went from being hounded by a couple of DCAs, incidentally these debts only appeared after my ex went awol and subsequently declared himself BR 3 years ago!

Once I move out the BR clause won't affect me as I have no need for contents insurance - I have nothing, certainly nothing worth stealing!

But I agree with the OP here, BR is not something that should affect us for the rest of our lives, and certainly shouldn't affect those we live with when, post BR, we are less of a risk in practical terms than those who muddle along.

~BB~

Hi wildatheart83,
Remarkably I was in the same position, couldn't tell my parents for what sounds the same reasons as you and had invalid house insurance. What I did was shop around and got them a good deal with the co-op who just happen to be BR friendly and they were happy with the saving phew!
I have only a few weeks to go now too but my poor dad's ill and I'm so worried he has left me anything in his will especially a share of the house as I don't want my BR, which like you was caused by a partner, to hurt anyone else!
The CAB also gave me advice that hasn't worked out to be true.
I will be so glad when the year is up but I will then have an IPA for two years, I never knew the rules aorund that either the CAB told me LILA would be over in one year they never even mentioned an IPA, I had no idea what it was!
Like you I think it's draconian how BR's are treated and how it last's for the rest of your life. I think the rules should change, the process is bad enough and meant to help. But it makes you feel like you are the worst person in society and not trustworthy in any way.

~BB~

Bankruptcy is not undertaken lightly and causes great stress.
So I think we have punishment enough with out the discrimination!
I just missed the post man and he left a card to say he has a letter for me to sign for and now I am in a panic thinking all sorts! I won't be able to pick it up until tomorrow morning so it will be a sleepless night for me!
So anyone who thinks BC's have it easy can think again! It's never far from your thoughts!