Traps with Some Home and Contents Policies – Trap #2: Sport
The exclusion that caused the grief in this case is the one reproduced below:
In my case involving a home and contents policy with such an exclusion, the Insured purchased his home and contents insurance online and thought he had a full cover. He was invited out by friends to play his first round of golf. As fate would have it, there was a group of hacks in front of the foursome of which the Insured was part. The hacks were well ahead, messing about on the green, while the Insured patiently waited for them to move off before hitting up to the green.
The Insured’s friends urged him to hit as they did not believe for a minute that he would hit the ball far or at all. The Insured did hit and it was a screamer, so much so that it hit one of the hacks, causing serious head and brain injury.
Shortly thereafter, the Insured discovered the policy exclusion, the insurer refused to meet the claim, and the Insured lost his house to compensate the injured worker.
It is normal for a home and contents policy to contain an exclusion for professional and high hazard sports, but not an blanket exclusion in relation to sport, as was the case here. If coverage is required for professional and high hazard sporting activities, then the Insured should arrange insurance under a specialist policy.
Please take the time to check your policy and, if in doubt, speak to your insurance broker who will interpret the policy for you and provide a comparison from LMI’s comprehensive PolicyComparison.com site.