Criminal Convictions and the effect on Insurance

Being involved in the Insurance Industry for almost 30 years I have seen that the way ex offenders are treated has changed in the last few years. For the good in some cases, but in certain cases obtaining insurance can be impossible. Hopefully,  someone will change this in the near future.

Major problems faced by ex offenders with convictions for Fraud are obtaining any form of insurance whilst the conviction is unspent. There is maybe one insurer that will insure a car whilst business insurance and public liability, and home insurance are becoming impossible to place.

Fire arms, Arson and Sexual offences are now more frequent and the ex offenders have no chance now in obtaining any form of cover without having either a having  huge portfolio of properties or spending £5000+ in going to Lloyd's of London. Most companies use the excuse that the reinsurances will not allow them to do this. The fact that some insurers that have links to the red telephone are owned by the tax payer has no bearing.

Issues speaking to clients I have found are:

• Internet based quote engines don't ask about criminal convictions before people start inputting the information. Therefore, the person assumes if they don't read all the material facts pages that they have cover if they hit the button. 
• Insurers that deal online only will not normally offer terms to any ex offenders! (Car insurance Convictions are not criminal in most cases)
• Internet based insurers should disclose prior to starting a quote if they don't insure anyone with criminal convictions.   

For the good there has been progress made in the form of the new rehabilitation of offenders act, where minor sentences have a shorter period of time before they are spent and the offender now has a chance to live a normal live after paying their dues.

Home Insurance - if you have committed a criminal offence you must inform your current insurer whatsoever, the offence is. A very few companies will allow the cover to go to renewal and then ask you to obtain new insurance. This is not a refusal to insure if the offence happened during the term of the policy, however if you did not disclose that you had a conviction pending the insurers are within their rights to cancel the policy from inception.

Please note that any mortgage on a property whether it is a private house or commercial property is subject to the property being insured. If the mortgage company find it is uninsured they may repossess the property.

Source Dave Burn of T R Youngs / Allstyles Insurance

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