When it comes to home insurance or damage, it’s easy to feel overwhelmed. It’s important to manage your affairs properly to avoid insurance problems.

Dans cet article, Assurances Multi-Risques a donc décidé de vous donner un fournir des informations sur l’assurance habitation. Notez que ces conseils sont tout aussi valables, que vous soyez assuré vers un assureur standard ou hors-norme!

Home insurance and second chances: in what cases?

Plusieurs situations peuvent faire en sorte que vous vous retrouvez en « deuxième chance » dans le cadre de votre assurance habitation. On parle également d’assurance habitation « hors standard » ou « hors norme » lorsque vous ne répondez plus aux critères standards d’assurance habitation.

You should be aware that an insurer can terminate an insurance contract at any time, but under certain conditions. Usually, the insurer can only terminate the contract when it expires. In other words, they can choose not to renew your insurance.

The law allows the insurer to cancel the contract if the risk increases or if the insured fails to pay the premium. This type of situation leaves a significant mark on your record and makes it difficult to find insurance!

Here is a very simple list of the different reasons that could lead you to find yourself in a second chance situation:

Have a criminal record;
Cancellation for non-payment;
A refusal of insurance;
Too many claims;
Having no credit history, or a poor credit history;
Having an unconventional creditor or landlord;
A building (residential or commercial) with serious physical defects;
A vacant building.

Increased risk

In Quebec, the insured has a duty to disclose any increase in risk. The insured must notify their insurer of any actions that could increase the risks mentioned in their insurance policy.

When taking out home or auto insurance, it is therefore important to be transparent. You will come out ahead and avoid unpleasant surprises!

What is a non-standard creditor according to a home insurer?

Most home insurers consider a lender to be non-standard if it is not a recognized financial institution. According to their definition, the interest rates charged by second, third, and fourth chance lenders are also much higher than those charged by recognized financial institutions.

Why do home insurers reject applications from people who have used a non-standard lender?

Home insurers have several reasons for refusing to insure someone who has used a non-standard lender. One of the main reasons cited by insurance companies is based on a strong statistical link. They argue that policyholders with high-interest mortgages are in a more difficult financial situation.

It has also been proven that individuals with higher levels of debt are more likely to file claims. If you don’t have the cash on hand to replace your water heater and it breaks, it could cause water damage. In such a scenario, your home insurer is more likely to have to compensate you.

An insured person who has resorted to a second, third, or fourth chance lender is also at greater risk of fire. Many insurers are therefore reluctant to insure people in this situation, as the chances of total loss are higher.

How to insure your home if you have a non-standard lender?

Here are a few tips to help you find an insurer who will agree to insure your home:

Contact an independent insurance broker specializing in non-standard creditor insurance.
Work with your broker by answering all of their questions. If you have used a non-standard lender, the insurer will ask more questions.
Tell your insurer the whole truth. If your insurer discovers new information, it could cause you even more problems.
Avoid waiting until the last minute to start looking for a new insurer as your renewal date approaches.
Évitez toute interruption d’assurance et toute annulation pour non-paiement, puisque cela rendra d’autant plus complexe l’acceptation de votre dossier d’assurance. *Pour en savoir plus à ce sujet, nous vous invitons à lire un précédent article sur le sujet ;
Veillez à ce que votre résidence soit en bon état et si votre assureur vous recommande des améliorations, effectuez-les afin d’éviter une annulation.

In conclusion, if you have used the services of a non-standard lender and need to be covered by a specialized insurer, your premium may be higher. Even if you are already in a precarious situation, this investment is worth it. Because if a disaster strikes and your home is not adequately protected, you will have to pay for the repairs out of your own pocket!

Your independent insurance broker

At AMR, we firmly believe that everyone deserves adequate insurance coverage, regardless of their financial situation. So, to find an insurer that’s right for you, don’t hesitate to contact one of our independent insurance brokers.

A member of our team will contact several insurers on your behalf to find the one offering the best possible coverage.