Lost item insurance.... how much paid out?

jd1000

Hi all,
Question. My father in law lost an expensive watch, but is covered by his home insurance personal articles thing.

The watch originally cost him £2,000. However, the price of a new one of the same model is now £3,000. (For the record, I wear a £15 Casio!).

The excess on the policy is £250, and the maximum single article item is £2,500.

So...

Will they pay the original £2k, or the new £3k? (The policy says its new for old).
Also, would the excess be deducted from the £3k, or from the max single article limit (£2.5k)?

So £3k- excess (£250) = 2,750 = over max limit of 2,500, so 2500 paid.

or
max item (£2,500) - excess (£250) = 2,250.



Sorry for the confusion, just trying to get it right in my head.

dacouch

Does he have the watch covered for away from the home?

I think you'll find the £2500 limit you've found is for claims within the home

jd1000

Hi,
yes, this is for away from home. He paid extra for it

FlameCloud

Assuming it isn't specified the policy single article limit will apply.

Personal opinion is that excess should be deducted prior to application of any policy limits. This is based on recoveries where insurers have argued that excess is first part of any claim and therefore last to be paid back. Mileage may vary though although any decent insurer will do it this way.

caliew

Hi,
I have worked in insurance for a number of years I have just left due to childcare. Up to date valuations are usually required for high end items that tend to come in more than 1.5k especially as gold, watches and jewellery valuations can change on a regular basis, if you have it on paper at 2.5k then possibly you would be awarded market value less the excess. Also check out the excess charges, is there also underwriter compulsories in addition to the voluntary or is it 250 voluntary and compulsory added together?

The new for old means usually you are entitled to the exact same model (or if the model no longer exists and a new model has came out in its place), however you may have a stumbling block because of the original valuation, which is why it is important to let your insurer know the exact valuations for risk.

Also usually you will need section 3 or 3a for accidental loss or damage both in and away from the home, have you put these sections on your home insurance?

Hope this helps

jd1000

Hello, he is with swiftcover, I couldnt find section 3 or 3 a that you referred to, what does that mean?

rudekid48

jd1000 wrote: »

Hello, he is with swiftcover, I couldnt find section 3 or 3 a that you referred to, what does that mean?

It means that you should completely ignore that post :money:

maddogb

jd1000 wrote: »

Hello, he is with swiftcover, I couldnt find section 3 or 3 a that you referred to, what does that mean?

I assume they mean that is an industry wide moniker for cover away from the home, maybe not, surely you found section 3 in your(his) policy?


I have been warned about a dubious practice by some insurers that involves a deduction by the same percentage you were under insured for, don't know the details on when it applies but watch out for it.


Simplified Example not including excess.


If I have cover for £10,000 but my possessions to the value of £15,000 are destroyed and I claim for them.
Some insurers work on this basis you are under insured by 33.3% so any part claim will be your insured limit minus the underinsured value ratio. so payout would be £10,000 minus 33.3% = approx.
£6,670
Not sure how widespread this is yet and don't know if it applies to "special item limits" but do make sure you are covered enough by double checking values.

jonesMUFCforever

I agree with above poster regarding the pro rata of claims for under insuring.
However if the item was insured for £2k then some companies will only pay out £2k less any excess.
They might offer to get a similar item through their preferred retailers or a cash offer which might be lower still.
You need to seriously read the terms and conditions of the policy carefully before proceeding.

jd1000

So the personal terms seem pretty straight forward:

Your policy schedule will show you the sums
insured and limits under this section.
Personal effects, valuables and money are
included if they belong to you or your family or
you or they are legally responsible for them and
they are mainly used for private purposes.
We will pay you up to the sum insured shown in
your policy schedule for any one claim. The sum
insured for this section is included within the
contents cover limit and is not in addition to it.
What is covered
Loss or damage to personal effects, valuables
and money belonging to you and your family
when:
1. anywhere in Europe, Jordan, Madeira, the
Canary and Mediterranean islands and
those countries bordering the
Mediterranean; or
2. anywhere in the world for up to 60 days
during any period of insurance as shown
in your schedule.

What is NOT covered:


1.Excess – shown in schedule.
2.Items listed under the general exclusions – see
separate document – Essential Information.
3.Loss or damage:
a) arising from the cost of remaking any film, disc
or tape or the value of any information held on
it.
b) caused by, or in the process of, cleaning,
maintenance, repair, dismantling, restoring,
altering, dyeing or washing.
c) caused by chewing, scratching, tearing or
fouling by your domestic animals.
d) caused by insects or vermin.
e) caused by theft or attempted theft from an
unattended motor vehicle unless the items are
hidden from view in a boot or glove
compartment, and all windows are closed and
all doors, including the boot, are locked.
f) to items not in the care, custody or control of
you, or your family.
g) caused by theft or attempted theft from an
unlocked hotel room.
h) arising from depreciation in value or other loss,
damage or additional expense following on from
the event for which you are claiming. e.g. costs
incurred in preparing the claim.
i) by mechanical or electrical breakdown or
failure.
j) caused to a motorised vehicle or craft.
k) to parts, accessories, tools and fitted radios,
cassette players and compact disc players,
MP3 and DVD players and satellite navigation
systems for the things excluded in (j) above.
l) to any property mainly used for the purpose of
business, trade, profession or employment.
m) to plants or any living creature.
n) to documents.
o) where property is obtained by any person using
any form of payment which proves to be
counterfeit, false, fraudulent, invalid,
uncollectible, irrecoverable or irredeemable.

p) specifically covered elsewhere in this policy.
q) to computers or computer equipment by:
a.accidental loss or mislaying or misfiling of
documents or records
b.viruses
c.contamination.
r) to lottery tickets and raffle tickets.
s) to bicycles.
t) to your or your family’s contents while
temporarily removed from the home to an
occupied private dwelling, whilst a member of
your family is attending college, university or
boarding school.

rs65

maddogb wrote: »

I assume they mean that is an industry wide moniker for cover away from the home, maybe not, surely you found section 3 in your(his) policy?

I think that poster had limited knowledge and is only familiar with one policy wording. They must assume, wrongly, all are the same.