What is a CCJ?
CCJ stands for County Court Judgement, which is a court order to repay a debt.
If you have outstanding debts that you don’t respond to or repay, creditors (a person or company you owe money to) can take legal action and issue a CCJ in England, Wales and Northern Ireland.
If you receive a CCJ, it will detail the amount you owe to the creditor, the deadline to repay the debt, who to pay it to and whether you can pay in instalments or in full.
Can you get home insurance with a CCJ?
If you have a CCJ on your record, you may be wondering how this will impact your ability to obtain home insurance.
Many insurers view a CCJ as an indicator of higher risks, as it suggests a poor credit history. As a result, some standard providers may decline to offer cover to customers with a CCJ.
Certain providers, such as UKInsuranceNet, may still be able to help but will usually ask for more information about your CCJ before confirming if we are able to offer cover.
Does having a CCJ impact home insurance?
As it is seen as higher risk, having a CCJ definitely impacts your ability to acquire home insurance.
If you already have a home insurance policy and then you are issued a CCJ, it is important to tell your insurer as soon as possible. If you don’t make them aware of this, it may invalidate your cover, and any claims may not be honoured.
Why do insurers ask about CCJs?
When you get a home insurance quote and you’re asked to give details about your situation and property, this is because the insurer is trying to calculate the risk of insuring your home. A CCJ indicates that someone has a poor credit history and they may not be able to make consistent monthly payments, so a lot of insurers will ask for more information about CCJs as, generally, an applicant with a CCJ may pose a higher risk.
FAQs
Does the value of a CCJ matter?
Yes, the value of a CCJ matters to insurers because the larger it is, the higher the risk for them to insure you.
How recent does my CCJ have to be to let my insurer know about it?
A CCJ will remain on your record for six years from when it is issued (if the full amount is paid within one month, it can be removed). Even if you have paid it off in full within this time, it will still remain visible , but will show as satisfied. If you are issued a CCJ while you have insurance cover, you should notify your insurers as soon as possible.
Is home insurance more expensive with a CCJ?
Having a CCJ may make your insurance more expensive, this is usually because insurers are taking on a greater risk and the price of the policy is adjusted to reflect that increased risk.
