It has been recently reported that Aviva Insurance have refused a claim for a fire on a residential property as the policyholder had not previously disclosed a conviction. Although it has been disputed as to whether the offence was considered a caution or an actual conviction remains, the duty still lies with the policyholder to disclose all material facts. Importantly, proposal forms do state that if the insured or policholder is in any doubt as to whether information constitutes a material fact, they should disclose it. The Metro newspaper describes this incidence as a “loophole” which it certainly is not.

The case surrounds a lady who failed to declare a benefits offence in 2002 that resulted in a £150 fine for fraud. After an arson attack on her home by her husband causing £241,000 of damage for which he was subsequently jailed for four years. After Aviva paid the claim, they subsequently found out about the conviction and have taken action to recover the full amount paid. Aviva have been insistant that, had they have known about the offence, they, along with most other insurers would never have offered cover.

There are specialist providers for property insurance cover for previously convicted individuals, but this case stresses the need to disclose any information that may influence the assessment of a risk.