In a case decided by the Insurance Ombudsman (IFSO) a couple were unsuccessful in their claim for full replacement cover for their home.

The couple originally took out full replacement cover, but failed to notice, at one of the renewals, that the cover offered was changed to a fixed sum insurance.

When the house burnt down they were left $200,000 short of what was needed to rebuild their home as the insurer only paid out the maximum fixed cover under the policy.

The IFSO held that the insurer had been clear about the change in the kind of policy offered and was not responsible for the owners failing to increase their cover to that necessary for full replacement.

It is really important to read the information provided by the insurer at renewal time as well as reading the whole policy to make sure you are getting what you want from your insurance.

If you are having issues with your insurance it pays to get advice from a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.