The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has emphasised the importance of homeowners taking necessary precautions to safeguard their properties during the Christmas holidays.
IFSO Karen Stevens highlighted the significance of adhering to policy conditions regarding the security of insured properties.
“Always take care to protect your contents by locking your house and closing windows when you go away on holiday. Insurance policies often contain reasonable care conditions that require you to take care of your insured property. However, you can also expect insurers to take a considered approach to each claim, reviewing the specific circumstances,” Stevens said.
Stevens gave an example of the importance of this advice with a particular couple who experienced a burglary after leaving a window open while on holiday. Their initial claim was declined by the insurer, citing non-compliance with a policy condition introduced in 2020, mandating the secure locking of the house when unattended. This condition, not commonly found in other insurers’ contents policies, was scrutinised by the IFSO Scheme.
“While it’s common for travel insurance policies to have an exclusion for claims where items have been left unattended in a public place, it is unusual for a contents policy to include a condition or exclusion like this. Other insurers will also usually cover claims where a window has been unintentionally left unsecured. If you have been reckless, grossly careless, or grossly negligent with your property, an insurer may rely on your failure to meet a reasonable care condition to decline your claim, however, this was not the case with the Singhs,” she said.
The IFSO Scheme’s investigation revealed that the insurer did not adequately inform the couple about this specific condition, which was deemed “onerous or unusual.” According to Stevens, insurers are obligated to highlight such conditions to their customers. The complaint was resolved in favour of the couple, with the IFSO Scheme ruling that the insurer could not rely on the condition to decline the claim.
Stevens underscored the necessity for insurers to clearly communicate policy changes, ensuring customers are aware of their responsibilities for policy coverage. Additionally, she shared tips for homeowners planning holiday getaways, stressing the importance of checking policy limitations, securing properties, informing insurers of extended absences, and ensuring ongoing insurance coverage.
“We offer a free, fair, and independent service to consider consumer complaints about insurance and financial services,” she said.
What are your thoughts on this story? Please feel free to share your comments below.
