Problem with Coveare Insurance ( Lloyds T.S.B )

[samphil]

Hi this is my first post on here , hope someone can please advise me .We came home from 5 nights away at my mothers last week to find our garden shed had been broken into and my fishing equipment was stolen so I contacted my insurance company who arranged for a loss adjuster to visit yesterday , before she left she advised us that all was ok she just needed to check what the maximum amount covered on our policy was and get back to us , We had'nt heard back from her by lunchtime today so I got back to the insurance company who advised me that a stipulation had been added to the policy in 2012 that stated that a home security system must be installed and in use and serviced yearly from a registered company ,I was flabergasted to hear this as this was the first I have heard of this ,it was'nt on the policy when I first took it out in 2009 ,I checked my policy and on the documentation on page one question 3 is Do you have a burgler alarm fitted ? . and my reply is in black and white NO . I Checked the small print on this years and last years policy and the alarm issue was placed on there in 2012 due apparently to us living in an high risk area ,I am absolutely distraught as they are saying my insurance is invalid and has been since this stipulation was put on ,I feel that the company knowing I had no alarm should have written to me stating there new rules and offering me the choice of complying with it and installing an alarm or offer me a policy with this stipulation removed even if the costs rose or just said because I had no alarm fitted they wouldnt insure me ,I feel misslead and that I have been robbed twice ,I paid my policy month after month loyally ,while all the time the insurance company knew full well my policy was worthless ,I have contacted the ombudsman and F.S.O who both think I have a good case ,I have also formally complained to both coveare and lloyds tsb ,I am very worried and upset though so any help or guidance would be gratefully received ,Thanks Guys

[honeybee13]

Hello and welcome to CAG. I'm sorry to hear about your problems.

 

I expect the forum guys will be along later with advice for you.

 

My best, HB

[samphil]

Thank's Honeybee , I hope they can offer some advice as I feel very deflated and angry at present

[unclebulgaria67]

When Insurers make significant changes from renewal they must make this very clear in their renewal documentation and normally allow time for compliance with the new security terms. It is no good just adding this term on at renewal, because to obtain quotes and then arrange for an alarm system to be installed would probably take at least a month.

 

So if Lloyds TSB did not make the alarm requirement crystal clear and not tucked away on page 3, then you have a really good case.

 

It is arguable as to whether an alarm would have made any difference anyway, as I would guess that any alarm endorsement was for the house and not a shed. As far as I know for a shed you would fit a shed alarm and it is not normally a part of a main houses system. So it is arguable as to whether this alarm requirement is relevant to the loss anyway.

 

I have handled such changes to policyholders terms for an Insurance company. If the underwriters changed the security terms for a postcode area, there is no reason for them not running a list of all policies affected and for them to write to customers immediately, telling them of the Alarm requirement. That way, policyholder would know that from renewal the alarm would be required, so they either arrange installation or they take their Insurance elsewhere, where it is not a requirement. I would question Lloyds TSB as to when their underwriters were aware of the alarm requirement for the postcode. If this was sometime ahead of renewal, I would ask why they left it until renewal and then hid this requirement on page 3, rather than make it clear on the renewal letter.

 

Make sure you inform Lloyds TSB complaints department that you are unhappy and that the FOS are keen to look at this, if there is going to be a problem. I think the FOS would probably agree with you, but this is not guaranteed, as it will be an individuals decision, based on looking at the documents.

[samphil]

Thank you so much for your reply and thoughts Unclebulgaria 67 , they are more or less what we think , To be fair when I rang both Coveare and Lloyds Tsb the people I spoke to on the phone all appeared equally shocked that this stipulation was placed on the policy when I had clearly answered no when asked whether an alarm had been fitted .I am deeply shocked still and am still awaiting a reply from there underwriters ,I am still hopeful that they will see sense here and simply settle the claim , If they want the alarm stipulation to remain I am happy then to ask them to either provide me cover with this removed even if the premium rises or just cancel the policy and take my business elsewhere to a provider who will insure us without an alarm fitted .Thank's once more I will keep you all informed of developments ,fingers and toes crossed that a suitable and fair outcome can be made .