Insurance companies are in the business of assessing risk. As such, when it comes to home insurance rates, many providers will refuse outright anybody with a criminal conviction. This blanket refusal makes sense in many cases, as a provider could not reasonably be expected to cover an individual convicted of theft or arson. But with millions of UK citizens on the Offenders Index, this rule can seem a little extreme, especially for those who have been convicted for offences that have little to do with the value of their property. Littering or even unpaid traffic fines can result in convictions that can make insurance very difficult to come by. Furthermore, anybody who has previously declared bankruptcy will likewise find providers reticent about providing coverage. For these people, getting home insurance will be more complicated, but it is not outright impossible. We look at what bearing criminal convictions and bankruptcy have on house insurance, and how you can go about finding a provider that will be willing to provide you with adequate coverage.
How convictions relate to insurance
As stated, most of the big providers will not insure anybody with a criminal conviction. When you apply for insurance, most providers will ask you whether you have any previous convictions. While you may be tempted to lie on this question, don’t, as doing so will likely invalidate your policy later on should you need to make a claim. Having a policy invalidated will mean you not only will not receive the pay-out from the policy, but you will have wasted hundreds, even thousands, of pounds through premiums over the years.
Spent and unspent convictions
While the big providers will typically deny coverage to those with criminal convictions, there are limits to this rule. You only have to declare a criminal conviction if you have an unspent conviction. Spent convictions cannot be used to deny coverage, nor can they be used to justify denial of a claim. A conviction becomes spent depending on a certain amount of rehabilitation time spent after the sentence is served. For example, a sentence on the lower end of the scale, such as a fine or community service, becomes spent after five years. For convictions of less than six months, you will have to wait seven years. A six month to two and a half year sentence will require a rehabilitation period of ten years. For any conviction over this period, it is impossible to have that conviction declared spent. Once a conviction is spent, it does not need to be disclosed to your provider.
Bankruptcy and insurance
If you have declared bankruptcy, then limitations on insurance will be similar to those who have convictions. In fact, it may be even more difficult to get coverage if you previously declared bankruptcy than if you had a conviction. Even if your bankruptcy occurred many years ago, many of the big insurance providers will outright deny any person with a bankruptcy filing. Unlike those with convictions, this ban could last for life.
How to get insurance
Fortunately, getting insurance if you have a conviction or have declared bankruptcy is not outright impossible. Most likely, you will have to visit a specialist insurance provider in order to get the coverage you need. Specialist providers deal primarily with properties and individuals that fall outside of the mainstream. As such, these providers are much more likely to take every individual applicant on a case by case basis, meaning the nature and circumstances of your conviction or bankruptcy will be taken into account. As expected, premiums from such firms will be higher than they would be with more commonly recognized firms. While the coverage from these providers will typically be about the same as any normal insurance policy, it is important to compare offers from different providers as certain exceptions may be imposed. For example, if you have been convicted of arson in the past, a certain provider may impose a limit on your coverage if your house is damaged by fire.
A criminal conviction or bankruptcy can follow you around for years, making insurance difficult to come by. While the major providers will typically deny you coverage outright, there are specialist providers that you can seek out that will give you the coverage you need. While the home insurance rates from these providers will undoubtedly by higher than they would be with a mainstream provider, you will have peace of mind knowing your property is adequately covered.
