Not upheld: claim handling and disposal of insured contents complaint against Intact Insurance UK Limited

Decision detail

Summary

Mrs G claimed that Intact Insurance improperly disposed of her possessions damaged in a house fire without replacing them. Intact had accepted the claim, assessed items as beyond economic repair, inventoried them with Mrs G's agreement, and disposed of them. Several months later, Intact discovered Mrs G had not notified them of building works at the property as required by the policy and voided the policy. The ombudsman found Intact acted reasonably in beginning remedial work before completing investigations, that Mrs G had agreed to the disposals, and that Intact had already spent more than the £75,000 contents cover limit before voiding the policy, meaning Mrs G had received an unentitled benefit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found it was not unreasonable for Intact to begin claim work before completing investigations into Mrs G's disclosures, as this prevented further deterioration. Both Mrs G and her husband agreed to the removal and disposal of items professionally assessed as beyond economic repair. Although the policy was subsequently voided due to non-disclosure, Intact had already spent more than the £75,000 contents cover limit, meaning Mrs G received a benefit to which she was not entitled. Therefore, Intact was not obliged to pay further compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website