Not upheld: misrepresentation and premium increase complaint against Covea Insurance plc

Decision detail

Summary

Mr S complained that Covea Insurance increased his home insurance premium after discovering he had failed to disclose a claim made in April 2025 under a separate property. Mr S argued the question was ambiguous and only required disclosure of claims related to the specific property being insured. The ombudsman found the question was clear and explicitly asked about any home insurance claims in the last five years, with supporting guidance that included claims under other properties. Applying CIDRA, the ombudsman determined Mr S failed to take reasonable care not to make a misrepresentation and that Covea was entitled to charge an additional premium. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied The Consumer Insurance (Disclosure and Representations) Act 2012 (CIDRA), which requires consumers to take reasonable care not to make a misrepresentation. The key question was clear and did not limit disclosure to claims under the specific property being insured. The question explicitly asked about any home insurance claims in the last five years and provided guidance that included claims under other properties. Mr S failed to take reasonable care as a reasonable consumer would have understood the question to require disclosure of all claims. Covea correctly classified this as a careless misrepresentation and was entitled to charge an additional premium under CIDRA.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website