Home Insurance cancelled before extension works start

dacouch

fool-on-the-hill wrote: »

@InsideInsurance no - they won't insure during the build - we have a standard JCT contract. And we are living in during the build. I expect the maximum build contract might be the issue - side return and loft take contract sum to c.£70k (London prices!)

I also agree about the declaration. Presumably if I cancel the build they would reinstate the insurance. So I am choosing to cancel because they don't cover my change new circumstances - ie a bigger house.

Thanks

Many Insurers don't like providing cover whilst structural alterations are taking place as they see it as too much of a risk

Quentin

dunstonh wrote: »

As always, the key to whether you should disclose is the way the question is asked.

It makes no difference how the OP is asked.


This does not need disclosing at all as a "refusal" or a "cancellation" or anything else at all!


His insurance record is unblemished, and you scaremonger by telling him he must tell future insurers he has been "refused cover"

dunstonh

It makes no difference how the OP is asked.

Of course it makes a difference. The wording of the question should be answered correctly.

His insurance record is unblemished, and you scaremonger by telling him he must tell future insurers he has been "refused cover"

Are you taking lessons for Alex Salmond? What scaremongering?

Quentin

dunstonh wrote: »

Of course it makes a difference. The wording of the question should be answered correctly

The OP's insurer cannot provide insurance any longer because of the change in circumstances regarding the construction work.


That is not something that warrants disclosing to other insurers that he has had insurance "refused", however such a question is asked.

huckster

dunstonh wrote: »

Of course it makes a difference. The wording of the question should be answered correctly.



Are you taking lessons for Alex Salmond? What scaremongering?

I agree with Quentin on this one. It is not a cancellation that needs to be mentioned at all. Once you start mentioning it, no doubt it will get recorded and Insurance is a small world. Also often the actual reason for cancellation is not recorded in way that would be easily understood/checked. It will just be a note that the OP had a policy cancelled.

The OP phoned their Insurers to mention works to their house and was told that the Insurers cannot continue the policy. It is the OP apparently taking the risk outside of the Insurers underwriting limits. It is not a cancellation, where there has been an issue of dishonesty.

dunstonh

The guide on go compare suggests it should be mentioned and they quote an representative from the ABI
http://www.gocompare.com/car-insurance/declarations-and-non-disclosures/

"Even if you answer yes to the question, then that would normally trigger your insurer into asking you for further details," said ABI spokesman Malcolm Tarling.

"It is possible that some insurers might have a blanket policy that they would not offer cover to someone who has had a policy declined in the past - but it rather depends on the circumstances. "If you've had a policy declined, for example, because you didn't meet an insurance underwriter's particular criteria, then that would be completely different - and potentially, much less serious - than if you had a policy voided or a claim declined because of a fraud."

Quentin

OP just ignore these posts from a financial advisor saying you must disclose this.

There is a warning at the top of the page that anyone can post here and to exercise caution

huckster

Quentin wrote: »

OP just ignore these posts from a financial advisor saying you must disclose this.

There is a warning at the top of the page that anyone can post here and to exercise caution

I cannot believe that this argument is being held. Well it is the MSE forum so it is pretty normal. Pretty silly,

This is obviously NOT a cancellation that needs to be disclosed, otherwise for example everyone that moves house or increases their Content sum insured, causing the current policy to be not suitable, would have to disclose a cancellation.

It is pretty normal for example for a brokers to have to cancel a policy for a client and then to arrange a more suitable policy elsewhere. I have dealt with numerous cases, where someone inherits an expensive item and the current Insurers won't continue the policy. It is then necessary to arrange a new policy elsewhere with a company that would accept the risk. According to dunston, I should have been advising my clients to declare a cancellation forever, based on one underwriter not accepting a change to a risk.

dunstonh

OP just ignore these posts from a financial advisor saying you must disclose this.

I am not saying he must disclose it regardless. I am saying he should look at the wording of the question and answer the question honestly.

It is up to the OP to decide what to do. The correct position is to answer the question as it is asked. That is the key thing. The question can vary with providers and is not universal. So, if the question is worded that answering yes is the correct response then that is what you do. If it is worded where answering no is th correct response then that is what you do. If it is a case that the wording is a yes response then it isn't something that is going to be a problem for you as the representative from the ABI confirms. However, it is all about being honest on the application and answering the questions exactly how they are asked.

there is a warning at the top of the page that anyone can post here and to exercise caution

As you appear to be suggesting he should be dishonest and not disclose it if the question is worded in a way that it should be disclosed, then you are right to warn the OP about your posts.

Quentin

huckster wrote: »

I cannot believe that this argument is being held. Well it is the MSE forum so it is pretty normal

The guy giving the bad advice has a history of taking umbrage when his "advice" gets questioned

This "argument" is more about him saving face than trying to help the OP