IVA Home Insurance – competitive cover with payment options
Struggling to find reasonable home insurance because of an IVA? Many people with an IVA run into difficulty when they quote for any type of policy. Often general insurers will either decline or inflate the premium as they do not want to take the risk on. CoverBuilder can help. Our IVA home insurance has a wide acceptance of people with poor credit histories IVAs and CCJs. Plus in 95% of cases, we offer equal monthly payment options.
Our dedicated IVA home insurance provides;
- Cover poor credit history customers
- Cover even if you have previous bankruptcy/IVA
- Competitive rates for people in these situations
- Instant online acceptable of policies
- Only basic details required to complete quote
Spreading the cost equally across the 12 months
If you have a poor credit history or CCJs/IVAs on your file, we still offer a monthly instalment plan*. This means the cost is spread equally across all twelve months. This means no lump sum to pay as a deposit or initial instalment. *We aim to offer payment options on as many quotes as possible where a CCJ/IVA is recorded.
Do we do a credit check?
You can pay for your IVA home insurance in full by payment card or via monthly Direct Debit. There is no credit check that leaves any form of imprint when you pay in full. We do a check when you pay monthly but this is a ‘soft’ check, we’ll provide an instant decision on whether monthly options are available on your IVA home insurance quote.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a set agreement with your creditors to pay all or part of your debts. It is a legally binding agreement between you and your creditors. It extends your overall repayment period with reduced monthly payments. A payment plan is then officially created and you undertake an agreement of regular payments to an insolvency practitioner. This person acts as a third party go-between. This insolvency practitioner will then distribute your money each month to your creditors.
If you are a homeowner the good news when it comes to IVAs is that you cannot be forced to sell your home. However, if you have more than £5000 of equity in the property then you can be made to remortgage. This will release your equity and pay off your creditors in a shorter space of time and help your poor credit rating.
Reporting changes to your financial situation
Any changes to your finances (for example an increase in your annual salary) must be reported immediately to your insolvency practitioner (IP). This is so that your agreement can be amended accordingly. Failure to notify them in this way is illegal and can result in court action being taken against you. Most IVAs will also include a windfall clause. This clause states that any large sum of money that suddenly comes into your possession (such as a large inheritance) must be used, at least in part, to contribute toward your IVA.
IVA vs Bankruptcy – which option to choose?
Many people choose to enter an IVA rather than file for bankruptcy as it can give you more control of your assets. If you own items such as a car you can often keep these as part of your IVA. In a traditional bankruptcy, you would have to use them to pay your creditors.
There is also the advantage with an IVA that you are able to keep your bank account and continue to use it. You don’t even have to tell your bank that you have an IVA. Being declared bankrupt means your bank account could be closed and opening a new one could be difficult.
Drawbacks of an IVA
Despite their benefits, there are drawbacks to an IVA that need to be considered. IVAs mean you are likely to have to pay creditors more than if you were bankrupt and for a longer period. Equally, if you are unable to keep up with your agreed repayments then your IVA can fail. Your creditors would then be within their rights to take action against you, including making you bankrupt. Your creditors can also refuse an IVA meaning you have to find an alternative debt solution. If this happens you can actually end up even worse off financially as you will still have to pay your IP for the time spent working on your file.
What happens at the end of an iva?
If you have previously had an IVA and it has all been successfully paid off it will still stay on your financial record for 6 years after your final payment has been made. During this time it can still be more difficult to obtain credit and access to certain financial products. Your credit score will be adversely affected whilst the IVA is active and for a period after. This is where our IVA home insurance offers you somewhere to turn.
Check your credit score a few months after your IVA has been completed to ensure this has been recorded correctly. You can send a formal request to get your record updated if it is still unchanged.
Repairing your poor credit score
It is also sensible to take steps as soon as possible after the end of your IVA to repair your credit score. Try and obtain some small form of credit such as a phone bill or low limit credit card. By paying one bill a month with this, and paying this off in full as soon as it becomes due, you can start to repair some of the damage and repair your poor credit.