Having an insurance cover cancelled, rejected or refused makes it very hard for one to get another insurance cover. But currently, things have changed and some companies can give you another cover without putting much emphasis on the reason of cancellation. The reasons could be partial disclosure of material facts, claims history, or refusal at renewal.
Actually, there is a company that provides this service online which makes it very easy for anyone who has had their cover refused or cancelled, and needs another cover. This service makes things simple and quick because within minutes, you can get insurance for your home.
The main objective for such companies is to offer covers for those who have had their insurance denied or cancelled in the past. Mostly, people have their insurance cancelled out of bad luck, which makes most home insurance companies superstitious that the same thing might happen if they offer you another cover. However, the companies that offer these services believe policies are cancelled out of misfortune, and in believing that there is a better future for their clients, provide the necessary services.
What is insurance refusal?
An insurance refusal is where an insurance company decides to cancel your policy or refuses to renew it, or even denies your claim. This could be because of many different reasons which may include your adverse claim history, non disclosure of some material facts and many others. But a mere refusal at the beginning of the application does not comprise of a refusal. This is not a material fact that requires to be disclosed.
Reasons for declining cover
Different insurance companies may fail to you give cover due to your situations. But there are companies that are ready to offer covers to all who need home insurance in whatever situation they are, not only for those whose insurance has been rejected. Situations that may make other insurers fear to insure you are also taken care of. Some of the fears may be unspent criminal conviction, health problems or unpleasant claims history. These companies are ready to give cover to all who need it. Every material fact needed should be disclosed to your insurance company, failure to do this may have some undesired consequences like having your cover cancelled or denied.
Why take the risk?
Fear of disclosing some material facts to your insurer thinking that when you disclose you will be refused a home insurance or have it cancelled, can land you into more trouble than you think hence you should know about the consequences of this. Not disclosing a material fact may make your policy invalid which means that if you make any claims they will not be paid which is a waste of your money. Not stating material facts willingly can make an insurer sue you in a court of law as it is termed as fraud. Also having lied in the first place you have to keep up with that lie even during claim which in most times doesn’t hold and can make you lose since you will not be compensated in case of a loss.