Has Anyone Seen the Ad for Home Insurance Where the Kitchen is Destroyed?

Yesterday I had two people mention in passing (one was not in the industry) that they had seen an ad for the Woolworth’s branded home insurance policies and had found it it funny and wanted to know if I had seen this happen in real life.

The scene, as described to me, is that a couple come home to find their kitchen looking like a bomb site, as it turns out some tradesman have gone to the wrong house to do a kitchen renovation.

My first thought was that this would not be covered by some policies, as they have a standard faulty workmanship exclusion.

When I checked the wording, I confirmed this was the case, with no write back for resultant damage.  I had written on this point before (see http://www.allanmanning.com/traps-with-some-home-and-contents-wordings-trap-1-faulty-workmanship/)

When I read through the exclusions, I found a second one, which would also likely apply. This one is an exclusion for building works, extensions or renovations. I reproduce one of the wordings below with the two exclusions:

woolies policy

 

 

This, of course, is not the first time where the marketing department have run with an idea for an insurance ad only to have it pointed out after production and airing that the policy does not cover the circumstance. It is prudent policy to run the story board past the claims department or product underwriter before going too far with any advertisement for insurance.

I stress that I have not seen the advertisement myself. I watch little television, so would welcome reader’s comments on whether the description of the advertisement, as given to me, is correct and if the advertisement is still being aired.

If it is at all as described, while the chances of such an event would, I expect, be slim, I feel the Insured would be entitled to have their claim honoured by the insurer regardless of the policy exclusion based on their advertising campaign.

There would, of course, be a right of recovery from the builder.

One final point, how the tradesmen obtained access to the homeowner’s house was not raised. Whether this would trigger yet another exclusion I am not sure.

 

 

One response to “Has Anyone Seen the Ad for Home Insurance Where the Kitchen is Destroyed?”

  1. Brett doyle says:

    Allan,
    The description given to you is correct. I’m glad you mentioned the ad, cause it was just yesterday I was thinking the same thing. I saw the ad again last night so it’s still being aired. Appears they’ve dropped the ball badly on this one.

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