Many homeowners could have worthless insurance

It has been revealed that millions of homeowners in the UK could be hanging on to insurance policies that are actually worthless as a result of a loophole relating to past convictions, according to a recent report.

Around seven million homeowners could find that their home insurance is actually not valid if they try to make a claim, meaning that they are paying for a worthless insurance policy without even realising, and could find themselves in hot water if they ever try to make a claim.

The problem has occurred as a result of the insurance industry clamping down on past police cautions and minor offences, and anyone that has failed to advise their insurance company of these could find that if they try to make a claim on their home insurance the policy is actually invalid.

Moreover this can apply to anyone that is in the household including people that are non-family members and are simply staying in the home.

Worse still landlords could be affected in the event that they have let their property to someone that has past convictions that they have failed to disclose, which means that the landlord will be penalised even though they are not at fault.

One woman was told to pay back the money she got from a claim after her home was burned down in an arson attack, and this was because she failed to disclose a fine of £150 for a benefits offence. She said: ‘I was shocked and felt sick. Why did no one tell me such a tiny fine could do this?’

Officials from an offenders support group said that insurance firms are not clear enough when asking questions prior to offering cover to customers. One official from the group said: ‘You are going to have to declare your past and you also have to declare the past of those living with you under your roof.’