You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled.

Given that the lost personal property was not part of the list of items owned by the policyholder, the claim for personal possession will not be settled. This is because the property is not part of the insurable interest subject to assessment because it is not part of the belongings of the claimant but rather of his guest. The insurance company does not have a contract with the guest and is consequently not liable for the claim. According to the Chartered Insurance Institute, an insurable interest must satisfy the following conditions:

• Have a subject matter of insurance
• The presence of economic or financial interest on the insured property
• The interest must be urgent and not expectancy
• The interest should be legal

Given that the policyholder did not own the property lost, the second condition outlined above was not satisfied because there was no economic or financial interest in the contractual agreement. Furthermore, the principle of indemnity would prevent the property owner from recovering property that is not owned by them, as it would be assumed that they have not suffered any loss. Therefore, it is difficult to execute the policy without having an insurable interest in the lost property. Overall, the claim for personal property will not be settled because the investigation revealed that the lost property was not owned by the claimant but rather by a guest who stayed over for the weekend. Moreover, the claim will not be settled because the policyholder never disclosed to the insurance company about all material facts regarding the loss, thereby leading to a misrepresentation of facts, which provides grounds for voiding the contractual agreement.

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Academic.Tips. (2022) 'You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled'. 9 October.

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Academic.Tips. (2022, October 9). You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-specialising-in-household-insurance-one-of-the-policyholders-has-home-insurance-which-includes-buildings-and-contents-cover-when-the-insurance-policy-was-inc-2/

References

Academic.Tips. 2022. "You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-specialising-in-household-insurance-one-of-the-policyholders-has-home-insurance-which-includes-buildings-and-contents-cover-when-the-insurance-policy-was-inc-2/.

1. Academic.Tips. "You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-specialising-in-household-insurance-one-of-the-policyholders-has-home-insurance-which-includes-buildings-and-contents-cover-when-the-insurance-policy-was-inc-2/.


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Academic.Tips. "You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-specialising-in-household-insurance-one-of-the-policyholders-has-home-insurance-which-includes-buildings-and-contents-cover-when-the-insurance-policy-was-inc-2/.

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"You are a claims handler for an insurer specialising in household insurance. One of the policyholders has home insurance, which includes buildings and contents cover. When the insurance policy was incepted the policyholder confirmed the property was their permanent residence. The policyholder notifies you of a claim for water damage to the property and personal possessions. Whilst investigating the claim, you discover the following: The policyholder rents out the property on short-term lets, during which they temporarily vacate the property. However, the policyholder has never informed the insurer of this. The personal possessions are owned by a guest who had rented the property for the weekend. The policyholder has received a criminal conviction for burglary, although this conviction occurred after the inception of the policy. Explain, with justification, whether the claim for the personal possessions will be settled." Academic.Tips, 9 Oct. 2022, academic.tips/question/you-are-a-claims-handler-for-an-insurer-specialising-in-household-insurance-one-of-the-policyholders-has-home-insurance-which-includes-buildings-and-contents-cover-when-the-insurance-policy-was-inc-2/.

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