Have you been particularly unlucky recently? Do you have a criminal record? If so, insurance companies may consider it riskier to insure you. This may make it more difficult for you to find home insurance coverage.
An insurer usually doesn’t cancel an insurance policy. However, they may cancel your home insurance policy due to an increased risk.
Fortunately, not all is lost. Everyone deserves a second chance! This article outlines the reasons why an insurer might refuse your home insurance application.
Increased risk
These words should not be taken lightly! In Quebec, the aggravation of risk is the policyholder’s responsibility. They must notify their insurer of any actions that could increase the risks mentioned in their insurance policy.
When purchasing home or car insurance, it is important to be open. Be honest! You will come out ahead and avoid unpleasant surprises.
Claim frequency
If, for some reason, you have had to file several claims with your insurer, you should know that these multiple filings could be considered an increase in risk.
Frequent claims also increase your premiums. You may have a hard time finding the best deal on home insurance.
Bad credit report
Your credit report can also have an impact on your insurance rates.
If you have filed for bankruptcy, banks may refuse to lend you money. In that case, you may be forced to turn to second- or third-chance creditors. However, insurers generally do not view this type of creditor favourably.
In addition, an insurer may deny your application if you have not paid your insurance premiums.
Criminal record
If you have a criminal record, it may be difficult to find an insurer who will accept your application. And if they do accept it, your home insurance policy may cost you significantly more.
The most important thing is to be honest with your insurer. If you hide your criminal record from your insurance company, you may have to cover the cost of a claim yourself.
To save time and to show your goodwill, we strongly recommend that you have your court docket information in hand when you contact your insurer.
AMR brokers can help you find home insurance with an insurer that accepts difficult cases. We can also offer advice on what actions to take if you are in this situation and address your specific needs. Contact us now so our brokers can help!