I would assume that you would have to state to insurance companies car, life, home n contents etc that your on a TD hence will increase premium by 100% or round about?
Hi pipsaholic.
I don't recognise these assumptions as reflecting reality.
You'll need to complete insurance applications fully and honestly. You'd also need to check for policy exclusions regarding personal insolvency.
The experience reported here is that most insurers don't appear to be too concerned, and that the policy cost is no different to what everyone else gets.
There are some insurers that do impose policy exclusions related to personal insolvency however, so the range of policies available may be slightly more restricted.
It would be fair to say that obtaining general insurance, and the cost of general insurance, simply haven't been significant issues discussed in this forum over the years.
Hi pipsaholic,
In over 12 years I've not known of anyone that has highlighted to me a problem with securing insurances or by entering into Insolvency has pushed their premiums up. It's on this basis I don't think you would have a problem with general insurances.
David is not currently posting in the Trust-Deed.co.uk forum
I advised my house insurer I was in a Trust Deed. They requested information if it was an IVA or Bankruptcy so I reported the TD to ensure there were no problems.
They took a note of it and the dates. There was no additional cost to my premiums.
Perhaps if I had subsequently made a claim they might have examined it more closely to ensure I was not trying to make money from a false claim (my assumption) but that did not transpire.
Better to be safe than sorry and find out that you are not insured because you did not declare it.
That's what we've heard from many people over the years Firewalker.
It's definitely the right thing to do to disclose, and also to confirm there are no policy restrictions or exclusions relating to personal insolvency.
However, when that's done, people have reported few problems and no cost implications that I can remember.
The issue we've heard about here has seemed to be more to do with business-type insurances, rather than general insurance and/or protection policies. Even then people have been able to find suitable business insurers who will cover them (via insurance brokers generally).
Nfu refused horse insurance for my wifes horse as we apparently were a greater risk of a fraudulent claim due to our TD!!!
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
We do hear stories like that from time to time Paul. Often it has been in connection to business insurance rather than general insurance, though it can apply to policies of any type.
Certain underwriters in certain firms may have determined that writing policies for people experiencing financial difficulty might place their employer at greater risk of a claim. Indeed, some firms may have even experienced this and adjusted their risk criteria accordingly.
We do know that for most types of general insurance there isn't an issue though. When applying for insurance policies it's very important to fully disclose any information that's requested and to proactively check for any policy exclusions or restrictions connected to personal insolvency. No point in buying a policy that isn't going to do its job in the event that it's needed.
Sorry to repeat myself on this (!) but I think it's very important that people are aware of this.