insurance being very awkward, help

jazg

i got burgled 29th of december 2011. Burglars took all my indian jewellery, watches, laptops, consoles, cameras, etc... reported it to police and insurance. My insurance broker is Kwickfit and the underwriters are AXA. A loss adjuster visited my house on behalf of my insurance company. After taking details, pic and reciepts of what had stolen, she advised me that two seperate departments would be dealing with the items stolen. One department for electricals and the other for the jewellery. Within two weeks i was paid out for the electricals and many items were replaced . The jewellery took two weeks longer. The loss adjuster got in touch and said, because you jewellery has gone over the sum insured she will have to refer a report back to axa. I have £60000 contents cover and £19800 is valuable cover. When i took my insurance out Sept 2011 i belived that amount of cover for my valuables was more than sufficient. Lmg who valued my jewellery has told my insurance that my jewellery is valued at over £40000 at this time:eek:. No Way.... Now my insurers are telling me i have undervalued and that they may not pay me anything.. i have been a victim of burglary and they treating me like the criminal... i have been so truthful and honest... what can i do.....????? plz:(

luci

If you are underinsured the company normally pays out on a pro rata basis. In your case they may pay out approx 50%.

Bangton

Have you ever had the jewellery valued? There's quite a difference in what you believed would be suffice and what Loss Management Group are valuing it at. September 2011 is not that long ago!!!

When it comes to jewellery because of the rising cost of gold you are advised to have jewellery valued on a regular basis to ensure the appropriate amount has been specified for valuables. If you don't declare the correct values of jewellery the insurance company is not able to consider the appropriate risk at your home, therefore providing premiums that are lower than you would pay if they knew the true values of jewellery.

I appreciate this might feel very cruel at a time you have been burgled. Sadly though the onus is on you to declare high value and high risk items and to know their value. Similarly if you don't know the value...you need to find out!

I'd probably say your insurer would pay up to the specified item limit but it's really in their hands...

jazg

nearlly all the gold was given to me and my husband when we got married 10 years ago... and when i went to asure parents advised that the amount seemed appropriate s the gold goes up and down every day, as they always checking price of gram.... just have to wait i suppose a all i can be is honest... thanks

jazg

would i have a leg to stand on if they denied payment and i went to financial ombudsmen or got soliciter involved?

Bangton

Eeeek..only experts can determine the value of jewellery. You'll know now but never go by the cost of gold per gram. Expensive jewellery tends to go up in value all the time.

Somewhere in your policy documents there will be something regarding valuables and the need to get them valued professionally (if you don't have the docs the insurance company website will have them). £20,000 is a massive shortfall and declaring such high valued jewellery would undoubtedly cost you a significant amount more in premiums. Similarly the higher the cost of jewellery the more likely the insurer would be to insist on conditions...such as all your jewellery being kept in a safe at night.

Have you ever known the cost of the jewellery...even when purchased as gifts 10 years ago?

I very very much doubt the FOS or a solicitor would touch this one...it's always in the insurer's documents. Sorry to bear bad news! Also the FOS would only review a complaint if the insurer has reviewed it first so you would need to complain to AXA's Customer Relations Department first and allow 8 weeks for a response before you could take to the FOS.

Of course feel free to involve who you like (I am only a forum member after all) but I used to work in a Customer Relations Department for home insurance so I have seen a fair few of these jewellery issues in my time!

jazg

thanks for your response.... should i just accept my loss, heartbroken to be honest... learnet a very big lesson....

Bangton

Jewellery is often sentimental too. I used to hate dealing with these things as it felt cruel. Well, hence why I don't do the job anymore. See what they say but I really do doubt they will pay the true value being such a big jump from the valuables limit on the policy.

Speak to AXA first and take it from there...try not to get upset until you have had a response as you never know. Do you think LMG are correct with the values?

jazg

if i truley thought my jewellery would be that much i would have insured for over that... i still cant believe that it is worth 40000, me and my famliy were so shocked when they told us this. im not asking for the 40000 as i never believed it to be worth that much in the 1st place and me and my partner have no intention in asking for that amount. we insured it for 19800 as i know that is a fair value for my gold at this time ( i know im not an expert). im not going to acheive anything by undervaluing my gold as by doing that im occuring a loss which ever way you look at it. lmg could have overvalued it...... if i knew my jewellery was that much i would have put it in the bank.....:(

mikey72

jazg wrote: »

thanks for your response.... should i just accept my loss, heartbroken to be honest... learnet a very big lesson....

No,fight it to the end.
Contact the FOS for advice on how to proceed with the insurer, if they decide not to pay the maximum you believe it was worth.

At the moment you only have their valuers word it was worth an excessive amount.

pedro123456

Lmg who valued my jewellery has told my insurance that my jewellery is valued at over £40000 at this time

A valuation to suit the IC, do as Mikey suggests contact the FOS.

http://www.financial-ombudsman.org.uk/contact/index.html