Home Insurance Question - help please

paddypooh

We are a vulnerable family with a disabled child so to get some support, employed a cleaning company. Unfortunately we have had items, including jewellery, stolen by our cleaner and the insurance company has refused to let us put a claim in saying we are not covered because they exclude cover for any form of theft by anyone lawfully within your home.

We took out what we thought was home insurance from a big name insurance company which included theft but, having tried to claim, it appears theft is not theft.

The policy doc says we are covered for theft & attempted theft but in the other column under not covered it says   'except for Loss or damage caused by you, your family, or any other person lawfully in your home, unless force and violence was used to enter your home.'

In trying to understand this, I've looked up theft, robbery and burglary.

'Theft is defined as the taking of someone else’s property without consent. It does not involve breaking, entering, using force, or fear. Force and violence is robbery and a burglary is non consensual access/trespass

Is it not mis-selling or mis-representation if they are selling you home insurance which covers 'theft' and then using the definition of theft as a reason for not being covered in another column on page 21 of a booklet which comes through after the policy is set up? Should they not be saying you are covered for robbery and burglary only?

Any help appreciated.

elsien

If it was set out in the terms and conditions, then I don’t think you have an argument. It’s pretty normal for insurance not to cover theft by someone who you have allowed in.

What action are the cleaning company and the police taking? 

DullGreyGuy

Every policy has its own wordings and whilst "theft" is a standard coverage every insurer will put its own terms and conditions on what is and isn't covered. 

Big name insurers tend to cover a wide range of potential customers from those that buy the cheapest cover they can find so a budget option with lots of exclusions through to mid net worth/mass-exclusive who are less price conscious but want better cover. 

Do you have a link to the policy book online?

gwynlas

Have you reported this person to the police? If they are stealing from vulnerable clients then you are probably not the only ones.

mebu60

It's fairly standard industry wording to require a forcible and/or violent entry to or exit from the building. Otherwise you could leave your door open for someone to wander in and steal from you. That's still theft but not covered under your insurance policy. Ditto anyone invited in.

In your case, why are you not pursuing the cleaning company? And why aren't the police involved? (Insurance companies would also require the latter too).

DullGreyGuy

mebu60 said:

It's fairly standard industry wording to require a forcible and/or violent entry to or exit from the building. Otherwise you could leave your door open for someone to wander in and steal from you. That's still theft but not covered under your insurance policy. Ditto anyone invited in.

In your case, why are you not pursuing the cleaning company? And why aren't the police involved? (Insurance companies would also require the latter too).

It's a fairly standard on lower end policies, most higher end ones only introduce it if you have a non-family member living with you or if there is cover for kids at university either as a standard clause or an endorsement based on the dec of who lives in the property