why do insurance companies what to know your past criminal convictions when getting building and contents insu?
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on Saturday, July 31st, 2010 at 5:32 am and is filed under Building Insurance.
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Because if you’ve been convicted of arson or insurance fraud, you’re not getting a policy. Really, think about it.
Isn’t it obvious? Risk assessment.
Property and Casualty insurance is different from life insurance. Everyone will eventually die. It’s just a matter of figuring the risk of who dies when. But not everyone will suffer a loss from a fire or theft, so the companies try to figure out what they can use to tell them if you’re a good or bad risk.
One of the measures a company can use to determine the risk is whether an individual has been convicted of fraud or theft in the past. If someone has stolen property or committed fraud (especially insurance fraud) in the past the company may not be afraid they might hide the insured contents and then put in a fake claim that they were robbed. The company may not be willing to offer the insurance to someone with that history. That doesn’t mean they are automatically excluded from insurance. It depends on the specific company and other issues can enter into it.
Hope that helps.
Because criminals aren’t known to be the most honest people..in general terms of course.