Insurance have made a mistake...what should we expect?

drumcrook

We have accidental damage on our contents policy. We made a claim on Monday and they called to pay out today. We have the item specified at £2200 on our policy and they called to pay out £489 less £200 excess so we'd get £289. When I queried this they said like for like. The item is 5 years old and this is a new model at today's price. It took 3 further calls for them to agree that they should never have allowed the item as a specified item on the policy as it is a depreciating item. I understand that the claim would have been correct had we not specified the item. No problem with that but we did!


They are looking into matters and have said they will come back to my by close of business tomorrow.


I think they will settle the claim as above and refund the additional premiums paid over the last 3 years with them for having the item specified. My husband wants the full pay out based on what we've paid for in the policy. The general wording on the policy booklet is like for like but I cannot find anything on the document for a specified item. Any experience?


Many thanks.

Quentin

Are you thinking that had you not specified the item you would have successfully claimed its purchase price of £2200 (and not it's current cost of £ 489 to replace on a like for like basis)?

If so, you are mistaken.

drumcrook

No


I understood that if we had not specified the item we would have received the £289.00. Completely understand that but we did specify the item and have paid additional items to cover it.


Insurance are saying they've made a mistake and shouldn't have allowed us to specify the item over the last 3 years we have been with them because it is a depreciating asset.


I just wonder if anyone has any experience of anything similar while they are looking into it. They've admitted they are at fault.

TSx

You've done well to get them to admit fault - it is your responsibility to correctly specify items on your policy.

drumcrook

Not items - premiums.


Thanks for responding!

Quentin

As they have admitted they are at fault, then press them to reimburse you the increased premiums they have charged you due to their mistake plus an amount to compensate you for loss of interest on this (and maybe ask for some compensation for the inconvenience they have put you to in dealing with their error)

magpiecottage

Quentin wrote: »

As they have admitted they are at fault, then press them to reimburse you the increased premiums they have charged you due to their mistake plus an amount to compensate you for loss of interest on this (and maybe ask for some compensation for the inconvenience they have put you to in dealing with their error)

As I understand this, the OP specified the item at outset.

If the insurer accepted the specification, and a consideration for money, by taking the premium, I think a contract of insurance exists.

It follows that I think the insurer is likely to find FOS somewhat unsympathetic to its view that, now that a claim has come in, if should be able to unwind that contract. Hopefully the insurer will recognise this but if not, based on what the OP has said here, I think a complaint would have a reasonable chance of success.

Quentin

magpiecottage wrote: »

As I understand this, the OP specified the item at outset.

If the insurer accepted the specification, and a consideration for money, by taking the premium, I think a contract of insurance exists.

It follows that I think the insurer is likely to find FOS somewhat unsympathetic to its view that, now that a claim has come in, if should be able to unwind that contract. Hopefully the insurer will recognise this but if not, based on what the OP has said here, I think a complaint would have a reasonable chance of success.

As the insurer has already accepted they are at fault, then you would expect no complaint will be required, and that the insurer will rectify their error without any need to put the OP to the hassle of a complaint, never mind the possibility of having to escalate to the FOS!

agrinnall

I think magpiecottage is suggesting that the FOS would see the contract of insurance as existing to provide the full replacement cost cover that the OP thought he had from the start and paid for during the life of the policy, and that they would require the insurer to pay £2000 rather than £289.

dacouch

How did you buy the Insurance eg over the internet or phone?

If over the internet, did you specify the item yourself or was there any intervention from the Insurer?

What have you chosen as the description for the item? (I'm guessing it's an apple computer or a tv)

rs65

drumcrook wrote: »

Insurance are saying they've made a mistake and shouldn't have allowed us to specify the item over the last 3 years we have been with them because it is a depreciating asset.

Presumably £2200 was correct when you added it. You've had two renewals and left it on at £2200. Why are the insurers saying its their fault?