I am a first year generation baby boomer. I am currently old enough to retire, and I consider myself an average baby boomer facing retirement. My assessment about my situation is a little bleak. I feel like if our federal government doesn’t do what it says it was going to do, there might be more seniors heading toward that bridge one day in which you get out of the weather to live under. Continue reading
Acts of God can sometime lead to bankruptcy. Being a former all lines adjuster who was licensed in 26 states and a former pastor who holds a master’s degree in theology, I can fully understand insurance company’s concept of acts of God. I know that people who experience nature’s tragedies are sometimes under insured, and if they are already struggling financially, a tragedy like the tornado that touched down in Moore Oklahoma on Monday will certainly be the financial breaking point for some families. Continue reading
Technically speaking, your credit or filing for bankruptcy should have no effect on your auto insurance premium. Any type of bankruptcy filed hurts your credit rating by remaining on your record for up to ten years. During that time, some automobile insurance companies use credit reports to assess what they will charge you for their premiums, but should they? Continue reading
It is no secret that when you file for bankruptcy protection, regardless of the type of bankruptcy you file, there are all kinds of strange things that can happen. After all, creditors do get stiffed in a bankruptcy, and other creditors are afraid you might stiff them. What you get out of it is your get out of jail card free and to financially start over. The creditors get stiffed and receive a nice tax write off.
How a Mortgage Insurance Company Might React to a Bankruptcy
One of the strange problems that might arise is how an insurance company covering a mortgaged residence might react to your filing bankruptcy. Understand that most homeowner insurance is paid by your mortgage company a year in advance through an escrow account. So, you would think homeowner insurance would keep your home insured until their year end cycle completes.
That is true for the most part, but a filing debtor had his homeowner insurance non-renewed when the insurance company found out the debtor had filed a bankruptcy.
The filing homeowner was shocked at the reaction of the insurance company and spent the last weekend shopping for a new homeowner insurance agent that will give him a quote. He wanted advice as what to do in this situation.
The hard cold fact is that an insurance company can deny you coverage if they feel like you are a credit risk, and a bankruptcy greatly lowers your score and remains on your credit report for up to ten years.
An insurance company may even have a policy against covering a home where the homeowner filed for bankruptcy protection. Whereas most homeowner insurance companies will provide you with the coverage you have already paid for, there is no law that says they have to renew your policy.
A Car Insurance Company can React Differently to a Bankruptcy
A car insurance company can also base their coverage on whether or not you are a credit risk. A car insurance company can cancel your insurance when your credit downturns because of the bankruptcy, then place you in a high risk pool if you want to keep your car insured, a provision of most state laws. Most states make it mandatory for insurance companies to have a high risk pool that will not discriminate against drivers for any reason, and there are variety of drivers in the pool other than bankruptcy filers. These types of insurance are a lot more expensive than what a person with good credit and a good driving record can obtain.
Solution and Overall Expectation for Finding a Homeowner Insurance Company
You can always appeal a non-renewal of a homeowner policy, and you might even have success if you have made your payments on time and have a good reason for filing bankruptcy. All you have to do is appeal the non-renewal to the insurance company that won’t renew your policy.
In the event your appeal fails, there is normally some homeowner insurance company out there that will sell you a policy at a higher rate. Some insurance companies realize it will be years before you can ever file a bankruptcy again, and they will take the risk on you by selling you coverage on your home.