Phone Insurance Claim

harryaw1994

So here goes...

I lost my phone with a value of £700 on holiday.

My house insurance will cover £600 with an excess of £150.
My Amex insurance will cover £250 with a £50 excess.

This of course means if were to claim on both I would receive £650, near enough the original value. Now it is my understanding that you are not allowed to claim twice for the same thing, although I haven't expressively checked with these providers. However it was my understanding that the purpose of insurance is to put you back where you were before an incident (not better off like some people try it).

My question is that would they consider this fraudulent, as I am not making my self better off, just trying to recover a loss?

glentoran99

harryaw1994 wrote: »

So here goes...

I lost my phone with a value of £700 on holiday.

My house insurance will cover £600 with an excess of £150.
My Amex insurance will cover £250 with a £50 excess.

This of course means if were to claim on both I would receive £650, near enough the original value. Now it is my understanding that you are not allowed to claim twice for the same thing, although I haven't expressively checked with these providers. However it was my understanding that the purpose of insurance is to put you back where you were before an incident (not better off like some people try it).

My question is that would they consider this fraudulent, as I am not making my self better off, just trying to recover a loss?

You cant claim for the same item on two policys, The end, You didn't purchase insurance to cover you to the required value so the insurer isn't obligated to put you back into any position.


The only possible outcome using both policys is whatever amex pay would be deducted from the other one

FutureGirl

You will never get the full £700 back, the most you would get is £500.

You claim from home insurance you have a limit of £600, so you will claim for £600. They will pay you £600 minus your excess. So you'd get £450.

However, with policy 2, you will only be able to claim £100 (as you already claimed for £600 on policy 1), so you will then be paid £100 minus your excess as a maximum, it may be less depending on whether the policy is new for old or not.


HOWEVER - you can claim on just your home insurance, and they will be able to provide you with a new handset. Although you paid £700, the insurer gets a discount. (If you then choose a cash settlement it'd be a the rate the insurer could have bought the handset for).

rs65

harryaw1994 wrote: »

My house insurance will cover £600 with an excess of £150.

What does the policy say about the £600 limit?

I would like to think they will deduct the excess from the value of the loss and then apply the limit.

Therefore £700 less £150 - they pay you £550.

rs65

There is also the Personal Effects Contribution Agreement if it still exists. Where's TSx when you need him?

paddyandstumpy

As per RS; they won't apply an excess to an inner limit as you'd lose out twice.

I'm sure there will be some FOS precedent on this, however I'm at the MIL's so can't go rooting for it online.

I agree with the £700 less excess calculation.

glentoran99

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/18/july-misleading.htm

Finally, the insurer had not calculated its settlement correctly. It should have deducted the excess before it applied the policy limit. We were surprised that the insurer had not noticed this error when it reviewed the complaint. We required the insurer to waive Mrs H's excess - as compensation - and to pay the balance of the amount she had claimed, together with interest.

oscarward

I recently damaged my phone to the point it was unusable.


I claimed on the travel insurance and they sent a claim form on which some questions were asked such as


How was it paid for (presume asking if CC would cover anything)
Was there any other insurance such as house insurance , they would contact them.
Did I have any insurance on my bank account.


So basically they were looking to offset some of the claim with other risk holders.


In the end they turned down the claim as personal possessions were not covered for water damage. But strangely enough the insurance on my bank account (nationwide) paid up after a phone call albeit with a higher excess.


So depends on who your insurers are may have differing outcomes.