The implications of being declared, or declaring yourself bankrupt are many and varied, not least when it comes to trying to obtain any financial services whatsoever. Home insurance for bankrupts can also be very difficult to find, if you are lucky enough to keep your house in the first place.
Historically, the reasons for insurers not offering home insurance for bankrupts were moral ones, declining to take risks on people who it was deemed ‘could not keep their house in order’ if you’ll excuse the pun. In recent times however, especially with the global financial crash in 2008, many people found themselves in an untenable position when it came to their personal finances due to circumstances far beyond their control. Fortunes and property portfolios that had taken years to accrue virtually disappeared overnight.
The consequences of being bankrupt invariably meant that bank accounts were frozen making it impossible for people who were paid electronically to get paid, and household bills which needed to be paid by direct debit could not be actioned. The problem got so bad that the government introduced basic accounts for people who could not otherwise obtain financial services, enabling them to facilitate simple banking tasks such as those above.
With the advent of so many people becoming bankrupt came an opportunity for insurers to offer policies specifically for this sector. After all, is a bankrupt any more of a risk to claim on his home insurance than his neighbour? I do not think that realistically, out of two semi-detached properties, a burglar would specifically choose the bankrupt’s house, in the same way that a lightning bolt would have a tendency to veer towards his property!
With this in mind, there are competitive policies to be had across the market, none more so than here at Comparecrazy.com. The one problem you may encounter however, and this is across the whole board not just here at Comparecrazy, is that you may not be able to pay your premium over instalments as most insurers outsource direct debit facilities to premium finance companies who will naturally carry out a credit check on you, and it is all dependent upon how much you have rebuilt your credit rating i.e. if you were discharged a month ago there is very little chance but if you were discharged a couple of years ago and have maintained household bill payments and maybe have obtained a credit card, there should not be a problem.
One thing that is for certain is that anyone looking for competitive home insurance for bankrupts needs to look no further than Comparecrazy.com. The business insurance comparison site!