Not upheld: Home insurance claim disputes complaint against Lloyds Bank Insurance Services Limited

Decision detail

Summary

Miss B complained that Halifax mis-sold her a home insurance policy by not making her aware of the extent of cover for personal belongings. During a September 2021 telephone call, Miss B informed Halifax she would be receiving a ring valued at approximately £10,000. Halifax clearly explained that items worth more than £2000 would need to be separately specified and insured, and that Miss B could contact them later to add the ring. Miss B chose not to add the ring at that time and never subsequently contacted Halifax to do so. When Miss B claimed for the loss of the ring in January 2022, Halifax declined the claim as the ring was not covered under the policy. The ombudsman found the policy was not mis-sold as Halifax provided clear information enabling Miss B to make an informed choice, and the sale was conducted on a non-advised basis.

The Ombudsman's reasoning

The ombudsman found that the sale was conducted on a non-advised basis, meaning Halifax's responsibility was to provide clear, fair and not misleading information rather than ensure suitability. Halifax clearly explained on multiple occasions during the telephone call that items worth more than £2000 needed to be separately specified and insured. The policy documentation sent post-inception also clearly stated this requirement. Miss B was given the opportunity to add the ring to her policy but chose not to do so and never subsequently contacted Halifax to add it. The ombudsman was satisfied that Halifax provided sufficient information to enable Miss B to make an informed choice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website