Insurance claim covered by two policies

blockleybloke

I need to claim for a lost backpack. I'm covered by both my travel insurance and my house contents insurance. The travel insurance cover is max £500 with a £50 excess, and my contents insurance is £2000 with a £350 excess. The value of my claim is about £1100. Just wondering how the claim will get split between the two insurers, and does it make a difference which one I claim with first? Thanks for any advice!

DullGreyGuy

You need to read both policies on what happens with dual insurance... may say there is no cover if any other policy covers the loss, may say costs will be shared equally or a range of other possibilities. Depending on what both policies state will dictate how it plays out. 

The Travel insurer will almost certainly ask about your Home insurance. Your Home may ask about travel insurance, especially if it happened outside the UK. 

TELLIT01

An additional potential problem is the insurers sharing the cost and both deducting their excess from any payment.

TSx

Don't claim on both policies - you have a choice between claiming

1) £500 from the travel insurer
2) £750 from the household insurer (and a hit to your claims history)

There is really no advantage to claiming any 'balance' from the household insurer, you may as well just make the full claim with them in the first place.

Your travel insurer will probably apply a wear and tear deduction to items but given the limit this may not make any difference.

If you claim on either, they will seek a contribution from the other policy. You do not need to pay a second excess, this is all handled in the background between the Insurers. Almost every household/travel policy will have the same provisions for 'cost sharing' so I would just leave them to it after agreeing the settlement.

mgfvvc

If your contents policy will give you 'new for old' that might make them the one to claim from?

TELLIT01

TSx said:

Don't claim on both policies - you have a choice between claiming

I'm not sure it's that simple.  Admittedly it's a few years ago and things may have changed, but when I made a claim on travel insurance for a lost item I was asked if it was covered on home insurance.

DullGreyGuy

TELLIT01 said:

TSx said:

Don't claim on both policies - you have a choice between claiming

I'm not sure it's that simple.  Admittedly it's a few years ago and things may have changed, but when I made a claim on travel insurance for a lost item I was asked if it was covered on home insurance.

Its 50/50... you dont initiate a claim on both but when one becomes aware of the other then they will and depending on the exact terms will dictate how the claim proceeds. 

TSx

DullGreyGuy said:

TELLIT01 said:

TSx said:

Don't claim on both policies - you have a choice between claiming

I'm not sure it's that simple.  Admittedly it's a few years ago and things may have changed, but when I made a claim on travel insurance for a lost item I was asked if it was covered on home insurance.

Its 50/50... you dont initiate a claim on both but when one becomes aware of the other then they will and depending on the exact terms will dictate how the claim proceeds. 

I don't have a copy any more but I believe the personal effects contribution agreement is still in place - most insurers are signed up to this. It has a few key elements:

- Contribution is only requested above a certain threshold, £150 when I last saw it
- Specified items are excluded
- The agreement specifically prohibits affecting NCD as a result of a contribution claim

There might be the odd home/travel insurer who doesn't process contribution claims under this agreement but they'll be few and far between.

I dealt with hundreds of travel insurance contribution claims, in both directions, when I worked in home claims for multiple insurers and I never saw a client being charged an excess under both policies - I'm not saying it doesn't happen but it is not at all common.