We are all equal before the law, but insurance companies are free to discriminate against people who have a criminal record. What can happen if you fail to declare that you or a person you are living with has a criminal record? Assurances Multi-Risques wants to build awareness on the importance of divulging all personal information to your insurance broker or company. We want to help you to obtain adequate insurance coverage for your home, whatever your judicial background.
We often get calls from people who are experiencing insurance problems after getting a criminal record. Here is an example of a frequently asked question: “Will our insurance company cover us after a fire if they learn that someone in our household has a criminal record?”
According to sections 2466 and 2467 of Quebec’s Civil Code: “The insured is bound to promptly notify the insurer of any circumstances that increases the risks stipulated in the policy and that result from events within his control if they are such as to materially influence an insurer in setting the rate of the premium, appraising the risk or deciding to continue to insure it. On being notified of the new circumstances, the insurer may cancel the contract or propose, in writing, a new rate of premium, in which case the insured is bound to accept and to pay the premium at the new rate within 30 days of the proposal, otherwise the policy ceases to be in force.”
For example, if you had not informed your insurance company that your new partner has been to prison for some crime or other, he could refuse to compensate you and declare that your insurance contract was null ab initio, and then proceed to reimburse you all of the insurance premiums he has received to date. This clearly illustrates why it is important to declare the fact that someone in your household has a criminal record. By doing this, you could well reduce the risk of losing your home.
Bottom line? Don’t wait until your insurance agent or broker brooches this thorny issue. Be proactive. Contact a broker specialized in substandard insurance and the management of clients who have a criminal record. An ounce of prevention is worth a pound of cure! You may have to change insurance companies and you may see your premiums go up, but your honesty will allow you to obtain insurance coverage that corresponds to your needs and your reality.
