Not upheld: claim declined - coverage dispute complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mr and Mrs M claimed for a diamond that fell out of Mrs M's engagement ring under their home insurance policy. LV declined the claim as the policy did not include personal belongings cover. Mr and Mrs M believed the ring was covered under the valuables section up to £1500. The ombudsman examined the policy terms and found that while jewellery was covered under valuables, cover only applied for specific listed causes such as theft or fire, and loss within the home was not included. Accidental damage cover was limited to contents and did not extend to valuables. The ombudsman concluded that LV's decision to decline the claim was fair and reasonable, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman examined the policy contract to determine if the loss was caused by an insured event. While jewellery was covered under valuables, cover only applied for listed causes such as theft or fire whilst in the home. Loss within the home was not a listed cause. Although accidental damage was included in the policy, it appeared limited to contents and did not extend to valuables. Additionally, the circumstances of the loss were unclear - it could have been accidental, wear and tear, or occurred outside the home. Without optional personal possessions cover, it was not unfair or unreasonable for LV to conclude the policy did not cover replacement of the diamond

How this compares

Source

Read the original decision on the Financial Ombudsman Service website