Even if you have insurance, you still need to take reasonable care of your property. If you don’t, your claim may be declined. Read this guide to find out what you need to do to avoid problems.
Insurance provides cover for unexpected events, but it does not cover every situation.
House, contents, car and travel insurance policies will often contain reasonable care conditions that require you to take care of your insured property. If you have been reckless, grossly careless or grossly negligent with your property, the insurer may rely on a reasonable care condition to decline your claim.
Even if you have insurance, you need to make sure you take reasonable care of your property. If you don’t, your claim may be declined.
Different insurance policies will contain different reasonable care conditions, so it is important you understand your policy wording and what is expected of you.
If you are unsure of your obligations, you can ask your insurer to help you understand your policy wording.
Unlocked car with keys
Peter* left his car unlocked with the keys in the ignition while he went into the pub to wait for his wife. His car was stolen while he was inside. Peter said there were security cameras and he was able to see the car. However, the IFSO Scheme did not believe Peter took reasonable care to protect his car. The insurer was able to rely on a breach of the reasonable care condition to decline the claim.
Open home theft
Gina* kept her valuable necklaces in a plain box inside her walk-in wardrobe. Gina was selling her house and, during an open home, her necklaces were stolen from her wardrobe. Gina said she had not thought to move the jewellery before the open home. The insurer relied on a reasonable care condition to decline her claim. However, the IFSO Scheme disagreed. Gina had been negligent by forgetting to move the jewellery, but it did not meet the standard of being grossly negligent. The insurer was required to pay Gina’s claim.
Failure to maintain
Liam* owned a house, but was not keeping it in good repair. Liam knew the house had been vandalised a few times with smashed windows and weatherboards ripped off. The Council had formally told him to clean up the property, but he had not done so. A short time later, the house was badly damaged by a fire that had been deliberately lit by a vandal. The insurer correctly declined Liam’s claim, because he had not taken reasonable care of the house and had not complied with the Council’s notice.
*Names have been changed
The wording of reasonable care conditions are specific to the type of policy you have. Check your policy document for the wording that applies to you.
Some general conditions may be a requirement to take reasonable care to:
Insurance does not generally cover you if the property damage or loss occurred because you were reckless, grossly careless or grossly negligent e.g. if you leave the front door of your house open for the cat when you go to work.
If you fail to recognise, or ignore, a significant risk to your property, this could impact the outcome of your insurance claim e.g. leaving the keys in the car ignition while you go to pay for petrol. Every claim is reviewed on its specific facts. You should provide all the information the insurer asks for, to help it assess the claim.
Some factors that could be relevant to a claim assessment include:
You are able to request a review of the claim decision through your insurer’s internal complaints process. If you are unhappy with the complaint response, you can ask the IFSO Scheme to investigate your complaint, for free.
Check your policy
Read your insurance policy and make sure you understand what is expected from you. If you are unsure, ask you insurer to help.
Don’t take risks
Do not take unnecessary risks with your property, and think about the possible consequences of your actions.
Look after your property
Keep your property maintained and in good repair.