Insurance claim after voucher offered

darkfish

Hi guys. Sorry for yet another insurance claim thread but I haven't seen this asked. In January we booked a trip for November to Florida as a package but independently booked 4 nights through a DVC (Disney timeshare) rental company. We've had the package refunded easily from Virgin, but the independent hotel is proving trickier.

The booking was non-refundable but the hotel offered to issue a voucher to be used in the next 2 years - the hotel is open. Trouble is, availablity is tricky to come by and prices have shot up next year, even assuming we can travel by then. We will have to book 11 months ahead to use the voucher which isn't something we're keen to do in the current circumstances. So I didn't really want the voucher.

I thought it would be an easy travel insurance claim, but they are saying that as we've been offered a voucher, this counts as a "recoverable loss" and they won't pay. Apparently they don't automatically owe us cash, and a 'replacement' hotel stay is okay. However, I'd argue that this voucher is extremely restrictive and not 'worth' as much as the hotel stay. I think I'm going to have to take this to the ombudsman but I was wondering if anyone else has had any success with this? 

Thrugelmir

If you booked direct with the hotel. A UK ombudsman has no powers over the business.  US state law takes precedence. 

Alan_Bowen

That may not be the case, the claim is against a UK based insurer, not against the timeshare provider based in Florida

Mrsn

Well no they don’t owe you a cash refund if the service you paid for is open to guests, they didn’t even have to offer the voucher. It is a pitfall of non refundable rates. This is not meant to be harsh but you have been treated better than they had to allow. I really don’t think an ombudsman (even if you can go down that route) would rule you’ve been treated unfairly.

Secondly your insurance are right, they will not pay out if an alternative has been offered. They aren’t going to be bothered about the terms and conditions attached to the voucher, you have in their opinion been suitably recompensed. 

darkfish

Thanks all. I wasn't expecting a refund from the hotel/agent - as you say, we knew the rules when we signed up. However, I was expecting an easy claim for cancellation from the insurance (taken out well before Covid). Obviously I'm suggesting taking the insurance to the ombudsman, not the hotel!

I'm surprised you agree that a voucher is considered suitable payout, but interesting to hear. We have investigated booking for next year and prices are about $200 higher so I'm going back to the insurance company, as I don't think I can book an 'equivalent' holiday, but we'll see. I know they wouldn't pay out for a voucher if next year was cancelled for some unrelated reason! It won't be equivalent value when it's not in their interest!

Thrugelmir

darkfish said:

I'm surprised you agree that a voucher is considered suitable payout, but interesting to hear.

The insurance company will expect you to mitigate your losses prior to making a claim. You've been offered a voucher for a monetary value equivalent to of your loss. Your unwillingness to use the voucher isn't a concern for the insurer. 

From the insurers perspective they would be open to fraud if vouchers were offered (and discreetly accepted) and also claims were reimbursed. Human nature is such that people will always take advatange. 

darkfish

Should the insurance not consider that this voucher is not for a holiday but for a hotel in a foreign country? I realise in this case I have received all my money back and can hopefully rebook flights etc next year but it seems unreasonable to assume that this is the case in general. What if I had cancelled due to ill health, or pregnancy? I don't think it's fair to assume that because you've had to cancel this holiday you must book exactly the same trip as soon as possible...

sheramber

If you cancelled due to illness the hotel is not going to give you a voucher so there would be no problem claiming from your insurance if you had the appropriate cover.