Home Insurance Claim - loss of jewellery

Mr_Punch_2 · 6 May 2006 at 10:55AM

My wife had her bag stolen in Madrid and lost a gold locket and chain. Our claim on our home insurance policy has resulted in an offer to provide jewellery to the retail value of £1010 (we are happy with this figure) from a firm in Hertfordshire (we live in Cardiff) who say they will supply a catalogue from which to choose an item - they don't insist on a similar items being chosen. The firm also advise that to use a local jeweller of our choice would result in the claim being settled on a cash basis - around £400. My wife feels it is important to be able to touch jewellery when selecting.
Is this a reasonable response by HSBC where I pay a premium for what is described as a Gold Service? Could I request a more local firm be used?
Any information would be very welcome.
Mr Punch

silvercar · 6 May 2006 at 12:48PM

The financial ombudsman has ruled in favour of the customer in cases similar to yours. Jewellery is a matter of personal taste. Point the insurer to the October 2001 edition of Ombudsman News which makes the ombudsman position clear. If they are still difficult ask for a letter of deadlock and take your case to the FOS.