The Insurance & Financial Services Ombudsman has upheld an insurer’s refusal to provide cover under a house and contents policy.  The insured had arranged insurance on their house, contents and three vehicles and made a claim when one of the vehicles was broken into.

The insurer declined the claim because the insured had failed to disclose that their previous insurer had imposed an additional excess on their contents policy.

The existence of this additional excess was a material fact which would have influenced the insurer’s decision to insure, or the terms upon which they offered insurance.  Two independent underwriters confirmed that the existence of the increased excess would be material to the offering of insurance and the Ombudsman therefore concluded that the insurer was entitled to void the policy for non-disclosure and decline the claim.

Alan Knowsley

Insurance Lawyer