Not upheld: Travel / life insurance claim disputes complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mr G claimed under his home insurance policy for water damage caused by a pipe/hose between his fish tank and filter working loose. LV declined the claim, arguing the fish tank was not a 'fixed tank' as required by the escape of water section, and the failed item was a hose rather than a pipe. The ombudsman found LV's interpretation reasonable, noting that 'fixed' in the policy context refers to building components (like windows or heating systems) rather than portable items affixed with brackets, and that the manufacturer's description of the item as a hose, combined with policy context, supported excluding this from coverage. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that 'fixed tank' in the policy context refers to items that are part of the building structure (like windows or heating systems) that would not be removed when moving house, not portable items affixed with brackets. Although the policy did not define 'pipe', the context of other policy references to pipes (underground, requiring building access) and the manufacturer's description of the failed item as a 'hose' rather than a 'pipe' supported LV's interpretation that this was not covered. The accidental damage cover Mr G held was limited and explicitly excluded carpets, flooring, and furniture. The initial positive impression given during early claim handling did not create an obligation to pay, as further investigation revealed the claim fell outside policy coverage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website