Home Insurance when on DMP

sarahsideways

After advice if possible from the experts on this forum.

Myself and OH have a home contents insurance policy with a major insurance company. We pay in monthly installments (hence have a 'credit agreement' with them). The direct debit comes out of my OH's bank account, but both our names are on the home insurance account.

OH has a fair credit rating but does not have a lot of disposable income
I am in a DMP (and have been for a number of years).

Today we received our insurance quote for the year 2014/15 and noticed that one of the statements from the insurers that we have to agree to says:

"I/we and anyone else residing at the property have never been convicted of, or charged with, any offence (other than driving offences), are not bankrupt and have not entered into an arrangement with creditors"

If we told the insurance company that I am in a DMP would they increase the monthly payment/refuse to accept monthly payments? If so, we couldn't afford the insurance. If we keep quiet though, and then made a claim, could the insurers not pay out due to finding out this information?

Been managing on my DMP well for a few years, but this has worried me and not sure what is best to do

Any advice gratefully received.

Thanks

Radley81

I don't know the rules, but I guess that they might expect you to inform them with the wording.

My parents went bankrupt and all we did was run a search through a comparison site and ticked the box asking this question. There was no question on there about dmps, it could be a policy of the finance people.

Maybe have a look at some other prices to see if you could save -they would be mad to lose your business when you have shown to be a reliable payer! X

antonic

When I was on my DMP, I was never asked if I was on a DMP when I renewed insurance annually. all they wanted to know was could I pay the premiums.

Which I did, no problem !.

chillpill

sarahsideways wrote: »

After advice if possible from the experts on this forum.

Myself and OH have a home contents insurance policy with a major insurance company. We pay in monthly installments (hence have a 'credit agreement' with them). The direct debit comes out of my OH's bank account, but both our names are on the home insurance account.

OH has a fair credit rating but does not have a lot of disposable income
I am in a DMP (and have been for a number of years).

Today we received our insurance quote for the year 2014/15 and noticed that one of the statements from the insurers that we have to agree to says:

"I/we and anyone else residing at the property have never been convicted of, or charged with, any offence (other than driving offences), are not bankrupt and have not entered into an arrangement with creditors"

If we told the insurance company that I am in a DMP would they increase the monthly payment/refuse to accept monthly payments? If so, we couldn't afford the insurance. If we keep quiet though, and then made a claim, could the insurers not pay out due to finding out this information?

Been managing on my DMP well for a few years, but this has worried me and not sure what is best to do

Any advice gratefully received.

Thanks

Hi,
Based on your circumstances, to knowingly accept an insurance quote containing the assumption that nobody living at the insured address has "entered into an arrangement with creditors" (when, in fact, they have!) would be an act of fraud, which I'm sure you will be aware is a criminal offence. As just one example (although ALL insurers T&C's will contain a clause broadly similar to this one), here's Liverpool Victoria's (LV's) clause




Misrepresentation and fraud




If you or anyone representing you:




n provides us with misleading or incorrect information to any of the questions asked






when applying for, amending or renewing this insurance;




n deliberately misleads us to obtain cover, gain a cheaper premium or more






favourable terms;








n provides us with false documents;


n makes a claim or part of any claim that is fraudulent, false or exaggerated;


n makes a fraudulent payment by bank account and/or card;






we may:




n agree with you to amend your policy to record the correct information, apply any






relevant policy terms and conditions and collect any additional premium due including


any administration costs;




n reject a claim or reduce the amount of payment we make;


n cancel or void your policy (treat it as if it never existed), including all other policies






which you have with us, and apply a cancellation charge.


Where fraud is identified, we will also:




n not return any premium paid by you;


n recover from you any costs we’ve incurred;


n pass details to fraud prevention and law enforcement agencies who may access and






use this information.


My advice to you would be to get an alternative quote from other insurer's who DO NOT stipulate that persons living at the insured propery haven't entered into an agreement with creditors, as not all insurers will make this stipulation (e.g. LV don't, as far as I'm aware!). For reference, I'm on a DMP myself, so I'm not just someone preaching from their ivory tower. In fact, I have a police caution (queue self-shame) and cannot insure with any insurance companies who state that any member of the household should not have any previous police cautions, although I can legally (and honestly) confirm that I don't have any criminal convictions!! Hope this helps?