Hi girl10.

I really hope this will not turn out to be a problem.

There have been some conversations in the forum before about exclusions that certain insurers may place on certain insurance policies in connection to personal insolvency, bankruptcy, or protected trust deeds.

You'll probably want to check the smallprint on your specific policy. I'd be hopeful though that even if there is an exclusion in place, the fact that the incident happened prior to either of you becoming insolvent might mean that they are happy to pay the claim.

Hi girl10
You should be fine as the incident was prior to your TD so they should not decline the claim. thats not to say they wont try, insurers are a nightmare just now paying out claims. If they do try and decline post again and if you want ill email you a response to send to them.
What did you say to them when they asked you out of interst? Also as TDA says best check your policy incase of any future claims.
All the best

Hi Hamish,

Thanks once again for sharing your knowledge in this area.

girl10 - Hamish has a lot of knowledge about insurance and has helped by sharing it in a number of threads previously where people have had insurance questions.

Hi TDA, no probs, hope it all works out girl10
cheers

I'm confused by this topic. If the premiums are paid up, why would they not pay out on a claim? I have full accidental cover on my house contents. In 20 years I've only ever claimed once. Would it be the case if something happened I made a claim they wouldn't pay? What reasons could they have for not paying? Surely the financial status of a policy holder is none of their business.

Hi saabrina.

Insurance policies tend to have conditions attached to them. From the perspective of an insurer these conditions are there to control the level of risk that they are exposed to. Being exposed to less risk may allow them to offer a policy at a lower cost.

Some insurers may view someone that has become insolvent (through a protected trust deed or sequestration) as being financially vulnerable and therefore a higher risk of presenting a claim to them. For this reason some insurers may put conditions and/or exclusions into their policies about whether cover exists where someone becomes insolvent.

What are the rights and wrongs of this? I can understand your comments, but the reality is that people should check their own policy wordings to ensure that they are covered as they believe that they are. This doesn't apply to every insurer or every policy, so there is no reason for someone in a trust deed not to be properly insured if they do some checks.

Thanks for replying TDA.
So therefore all people who are in TD/IVA/Bankrupt are dishonest and would commit fraud!! That's a very general view to take and a pretty awful one too.
I've checked online with my home contents insurer and in the changes that must be notified it states they must be informed if you become bankrupt. It doesn't mention TD or IVA, should I check with them, or leave it as it doesn't state TD?

Hi saabrina.

I don't think that, and nor do most insurers as far as I can tell because obtaining suitable insurance isn't a major issue for most people in protected trust deeds.

Hamish, who has experience in the insurance industry, has alerted visitors to the site to check their policies to make sure they are not covered by a firm that perceives being in a trust deed as making you more of a risk.

If you have any doubt about your personal coverage I think it's worth making your own enquiries just so that you can have peace of mind.

Saabrina,
Some insuers just dont want to take the risk, same if you have a couple of accidents in the previous few years or motoring convictions/or criminal convictions and even (more common years ago) certain medical conditions, some insuers will look on these things unfavourably and can possibly charge extra or decline to cover you.

Id check if I were you just to be on the safe side, if you make a claim and you havnt told them then you run a very high risk of not having the claim paid if they have an issue with TD's.
All the best

Hi - I ama bit worried about this now. Moving to a new home and want to get house insurance but obviously I am in a trust deed - does anyone have any names of insureea that dont frown upon my.financial mistakes?? Thanks

Hello blondie10.

Hopefully Hamish and/or other visitors will have some suggestions for you.

Don't worry too much though, I'm sure you'll find suitable insurance easily enough.

If you are arranging a new insurance policy, mention the trust deed to them. That disclosure to them will mean they can confirm that your proposed new insurance policy will cover you as you intend it to.

Thanks TDA - dedication working on a.weekend!!

We aim to please blondie10!!

blondie10

Homeprotect and Peacocks will defo do it, there are companies that will accept you no probs, best just phone around/check internet or go into your local insurance broker who should give you professional advise and hopefully get you a competitive quote.
All the best