Insurance refused due to hotel offering rebook

Duckynineteenseventyfour

Hi there, 
I was due to travel to Tenerife with husband and kids in late August- when it was against Fco advice. (Booked and insured Jan-Feb 2020). 

I claimed on Sainsbury’s travel insurance and they paid out for the Ryan Air flights (minus excess) but refused to pay for the hotel because the hotel are offering to let me rebook - even though when I booked it was a non-refundable non-changeable rate. 

I can’t go another time because flights would now be too expensive and the holiday would be uninsurable. 

It seems unfair that they are refusing to pay because the hotel, in an attempt to be decent, are offering to rebook but by doing that they have cost me over £1000. 

They are saying they won’t pay because I can recover the costs another way and/or I am disinclined to travel. I have complained and awaiting response. Is this worth taking to the FCA if they refuse again? The flight and holiday were over £2000 but I have only received £500 back from insurance (flights minus excess). 
Thank you

Thrugelmir

When does the offer of rebooking last until? 

Duckynineteenseventyfour

They haven’t specifically said but at least next year

[Deleted User]

Obviously a lot hinges on the type of policy you took out but You would think that if you have insurance covering you for disinclination to travel due to FCO advice, which you appear to have as you were reimbursed for flights by insurer, then you would be insured for it all!  However have read that insurance companies are taking the stance that a voucher is an acceptable recompense!  It isn’t!  for many different reasons people maybe cannot or don’t want to rebook.  

You may have a fight on your hands but I would dispute their decision and take it to the ombudsman if you don’t get anywhere.  Which way they would rule though,  is not a certainty.  It needs a test case.    

I am assuming you haven’t actually accepted or received any vouchers? 

sheramber

It depends on what you policy says.
 Some state that they will not cover any loss than can be recovered elsewhere which covers them.

 

Thrugelmir

Insurance companies aren't going to leave themselves open to mass scale fraud. Unfortunately far too many people would take advantage of both. 

Duckynineteenseventyfour

Hi All, in response to my complaint the insurance co have offered me 50% ‘gesture of goodwill’- should I accept or go to the ombudsman in the hope of getting it all back? 

mattyprice4004

Duckynineteenseventyfour said:

Hi All, in response to my complaint the insurance co have offered me 50% ‘gesture of goodwill’- should I accept or go to the ombudsman in the hope of getting it all back? 

Have you clarified that they are happy to not chase the hotel for recompense, meaning you get a 50% refund AND you can rebook? 
If so, that seems a great deal to me! 

CKhalvashi

mattyprice4004 said:

Duckynineteenseventyfour said:

Hi All, in response to my complaint the insurance co have offered me 50% ‘gesture of goodwill’- should I accept or go to the ombudsman in the hope of getting it all back? 

Have you clarified that they are happy to not chase the hotel for recompense, meaning you get a 50% refund AND you can rebook? 
If so, that seems a great deal to me! 

Completely agree with this. It should offset the higher flight costs when the borders open, which will be when Covid is under control.