House Insurance and Bankruptcy

lynseydee

Wasn't sure whether to put this here or in the bankruptcy forum but basically I need to renew our house insurance and one of the questions it asks if anyone has been bankrupt, which my husband has been. This happened in 2001 and he has since been discharged. When I go through the comparison website saying he has been bankrupt only one insurer comes up but when I take it out loads come up. I'm 99.9% sure this didn't happen when I did the renewal last year so don't understand why it's happening this year.

As the bankruptcy was 10 years ago can I leave it off or do I have to always declare it even after all this time. If I remember rightly he was discharged about 3ish years ago.

huckster

You don't need to include him. Just put it in your name. The policy will still cover you and members of your family who normally reside with you.

If you really wanted for whatever reason to include his name on the policy, then with some companies you would need to phone them. Then once you mentioned the bankruptcy was discharged a number of years ago, most won't be that bothered.

Sally_A

I would put the quote through without mentioning it, but phone the cheapest company and explain that the bankcruptcy is 10 years old.

The question often goes along the line "Have you, any family member, or those that normally reside with you" ever been XXX, YYY, ZZZ.

That way you cannot be done for non declaration at a later date.

chambta

Why is bankruptcy an issue in relation to home insurance?

huckster

Some Insurers did not ask about bankruptcy, but now most do. Now there is a recession, Insurers perceive a risk of those that have shown poor financial management, being more likely to commit fraud. As with all matters of risk it is arguable whether this is correct or not.

dacouch

Not sure if they still don't ask about it but Nationwide's home insurance never asked about bankruptcy, obviously check all of their questions and any assumptions

mexicanhat

If the proposal asks about Bankruptcy you MUST disclose it, bankruptcy records are public information and if find out your policy could be voided. Most proposal forms ask about anyone in your household so taking out the policy in your name is not the answer. Even though he is a discharged bankrupt it definitely still needs to be disclosed. Not all Insurers do ask about bankruptcy though.

huckster

Yes probably the advice is that if they ask about anyone in the household has ever been bankrupt, then you need to phone them. It was just that the bankruptcy was discharged 10 years ago and I thought it a bit harsh not to quote 10 years down the line. I have since had a look at a few Insurers sites, Aviva, Axa, Direct Line and cannot see mention of bankruptcy in assumptions/questions.