As an MGA that prides itself on writing risks “where there is a story to be told”, it often means we are faced with difficult or challenging risks. Sometimes, a bit more factfinding and a few more questions can make even the most complex cases pretty straightforward.
We frequently see risks with CCJ’s, adverse claims history, even some minor criminal convictions and more often than not, non-standard construction. But there are mitigating circumstances that may help us win that difficult case for you:
County Court Judgments (CCJs)
- Age of the CCJ: Older CCJs might be viewed less negatively than recent ones.
- Number of CCJs: A single CCJ is generally less concerning than multiple ones.
- Reason for the CCJ: If the reason is justifiable, such as a period of unemployment or illness, it might be seen in a more lenient light.
- Repayment Plans: Evidence of consistent repayment efforts can improve the perception of the applicant.
Adverse but Explainable Claims History
- Circumstances of the claims: A history of claims due to factors outside the insured’s control (e.g. natural disasters) might be viewed differently than those caused by negligence.
- Gaps in claims history: A long period without claims can offset previous incidents.
- Risk mitigation measures: Steps taken to prevent future claims, such as installing security systems or removing certain risk elements can positively influence the assessment.
Minor Criminal Convictions
- Age of the conviction: Older convictions are often less relevant than recent ones.
- Nature of the offence: Economic crimes such as fraud or money laundering might be viewed more negatively than minor offences.
- Rehabilitation: Evidence of rehabilitation, such as attending courses or obtaining qualifications, can improve the perception of the risk profile.
Non-Standard Construction
Non-standard construction refers to buildings constructed using materials or methods that deviate from traditional brick or stone structures with tile or slate roofs. Examples include timber-framed houses, concrete, or steel-framed buildings.
- Increased Risk: These properties often pose higher risks due to factors such as:
- Increased vulnerability to certain perils (e.g. fire, subsidence)
- Higher repair costs due to specialised materials or techniques
- Difficulty in valuation
- Underwriting Challenges: Insurers may find it challenging to assess the risk accurately, leading to higher premiums or even declined coverage.
- Mitigating Factors: Proper maintenance, up-to-date valuations, and specialist building reports can help mitigate these risks and improve the insurability of the property.
Similar to other “bad risk” factors, the impact of non-standard construction on insurance premiums and availability can vary depending on:
- Type of insurance: Home insurance is likely to be most affected, but it can also impact commercial property insurance.
- Insurer’s risk appetite: Some insurers specialise in non-standard construction properties or may understand more about the various risks the non-standard construction presents.
- Extent of non-standard features: The degree to which the property deviates from standard construction will influence the risk assessment.
Ultimately, all of the above can negatively impact both an individuals or a business’s insurance profile, but they don’t necessarily restrict them from obtaining coverage. A detailed assessment of the specific circumstances is crucial, and there’s often room for negotiation and alternative options.
So, the next time that you have a risk where there is a story to be told, contact Choice and put us to the test!
