Home Insurance Lies

nufc_fan

I dropped my expensive apple laptop off the desk at home last week and smashed the screen. Apple warrenty doesn't cover accidental damage so i called my home insurance company.

Went through all the questions about what happened and the lady asked what I use it for, I replied "mainly my home personal computer but I do occasionally use it for some work".

To which the reply was "it is definately not covered if you use it for work, sorry". Despite making the point that it is mainly a personal computer but I occasionally do work at home like a significant proportion of the nation I was told in no uncertain terms that it was not covered. I told the lady that you must not cover anyones laptops then if this is the case and was met with the reply "well i dont use mine for work".

Anyway, furious I went away to read my policy to discover that Home office equipment was covered and that it includes computers. I called them back and was put through a different operator who instantly aggreed with me and could not understand why I was told bare faced lies.

In the end i have decided not to claim as the excess in exactly the same as the quote i have had to repair the computer myself. but a warning to everyone out there, READ your policy before making a claim and be careful as they will almost certainly try to fob you off.

Needless to say I wont be renewing and I have considered making a formal complaint.

McKneff

Have you checked with your ins. company that your record is not 'marked' even though you have not claimed.

Some do, and up the premium as they say youre more of a risk.

theJudge

Sadly, given the horrendous claims management and history of lies associated with insurers, the general assumption is that all customer services personnel who work for them are liars. This may not be the case but they've brought it upon themselves.

FlameCloud

Call centre staff are like surveyors- ask 5 different ones the same question and you get 5 different answers.

Is it right? No. Sadly, there is little alternative.

theJudge

The FSA has principles about treating consumers fairly. However, when it comes to the insurance industry, what's obvious from this forum, is:-

1. You need to employ a lawyer when taking out an insurance policy to explain all the situations where an insurer could avoid paying out when making a claim.

2. You need to keep all receipts for practically everything if you wish to make a contents claim. Not sure what happens if your house has burnt down and your paperwork gone up in smoke.

3. Even if you dot the i's and cross the t's, and have kept all of your paperwork the insurer will then try to delay the claim so as to deter the policyholder from pursuing the claim. In the case of something major which renders parts of your accommodation unuseable this puts severe pressure on a policyholder.

4. If a policyholder persists at this point, then the insurance company will try to offer a lowball amount, putting the onus on the policyholder to refute the amount by employing their own surveyor at their own cost and incurring lengthy delay in payment.

5. England and Wales is almost unique nowadays in having an insurance law where a policyholder experiencing the problems above is unable to claim damages in court. The FOS is not a legitimate substitute for the courts as the delays using that service are more lengthy than the courts and the FOS is staffed by industry insiders.

None of the above is treating policyholders fairly. All of the above will cause policyholders to have a total lack of faith in the industry which will ultimately cause the entire industry problems. Where are the regulators and where are the legislators?

dunstonh

Call centre staff are like surveyors- ask 5 different ones the same question and you get 5 different answers.

The difference is that surveyors know their subject. Many call centre staff are straight out of the job centre on 3 month rolling contracts with no "buy in" to the job they are doing. It's a means to an end. If you are lucky you will get one of the long term staff who does have a buy in with the career they are on but they are typically in the minority.

The consumer is getting the service it is willing to pay for with most call centres.

nufc_fan

Calling them a liar may be a little harsh. But what is worse, trying to trick you out of a rightful claim or employing staff who dont understand the policies and allowing then to make decision on if you can claim or not.

nufc_fan

Thanks. In the end it has not made any difference to me as it cost less to repair the computer myself. Its just a future warning to myself and anyone else who reads this to be aware. If they say no, dont just accept it, look into your policy fully and confirm what they are telling you.

Many people in my situation would have just accepted what the original operator said and not pursued it further.

theJudge

In the following article, a lawyer outlines the problems with current UK insurance law and the history of reform which has been asked for from successive governments since 1980:-

http://www.peterjtyldesley.com/files/2008%20The_reform_of_insurance_contract_law.pdf

In summary:-

1. Insurance law in England & Wales is based on an act of parliament more than 100 years old plus subsequent case law.

2. The law is almost entirely 1-sided stipulating what a consumer must do to prevent their claim from being avoided but not putting an onus on the insurer to treat the customer fairly or pay damages.

3. The unfairness of the law has been known about for over 30 years. For example, there is nothing to prevent in law, an insurance company from indefinitely delaying your claim.

4. Suggestions for reform by the law commission and complaints by consumer bodies such as the consumers association have been ignored by successive governments over the years, consistently siding with the insurers in keeping the current situation whereby the consumer is wholly reliant on industry codes of practice, the FOS and the inevitable decline in confidence in the entire insurance industry, if insurers actually screwed too many policyholders.

5. The gentlemen's agreement is slowly unravelling as insurers come under pressure to provide cheaper premiums.

6. The law commission have proposed 2 new bills to sort this mess out. The one that is of most significance to consumer protection won't reach the draft stage until 2013.

nufc_fan

Useful info. It really is a minefield. You just have to hope you never need to claim for anything of serious value.

Helen_J_3

theJudge wrote: »

In the following article, a lawyer outlines the problems with current UK insurance law and the history of reform which has been asked for from successive governments since 1980:-

http://www.peterjtyldesley.com/files/2008%20The_reform_of_insurance_contract_law.pdf


6. The law commission have proposed 2 new bills to sort this mess out. The one that is of most significance to consumer protection won't reach the draft stage until 2013.

It is so frustrating how long things take in this country!

Another option is to complain to the ombudsman about a service you have received. It takes about 6 months to get a conclusion from them :T