One of the benefits of NFU Mutual’s Home and Lifestyle, Home and Lifestyle Plus and Bespoke cover is the optional holiday accommodation cover offered. It is intended for home insurance customers who rent out their own home or a small number of holiday homes.
During April, we identified a discrepancy within the Holiday Accommodation section of our Home and Lifestyle, Home and Lifestyle Plus and Bespoke policy documents.
The discrepancy was between the policy wording, Insurance Product Information Document (IPID) and Schedule, under ‘Loss of Profit’.
The main policy wording states we will consider loss of profit claims affected by food or drink poisoning, or any ‘human disease’ at or within 25 miles of the holiday home. Human disease is defined and refers to a specific list of diseases. COVID-19 is not one of them, and this is an industry view.
In error, the supporting IPID and Schedule documents show ‘infectious disease’, which is not defined and is therefore able to be viewed in the widest sense.
Acknowledging the discrepancy, and any confusion this may have caused customers at an already difficult time, we have made the decision to consider Covid-19 under this section for the benefit of these customers.
In addition, we have decided that it would be unreasonable to ask customers to prove the existence of Covid-19 within a 25-mile radius.
This enables us to specifically consider loss of profit claims of up to £10,000 during the Government lockdown period, for applicable customers with Home and Lifestyle, Home and Lifestyle Plus, and Bespoke policies with Holiday Accommodation cover.
We are proactively contacting policyholders who had claims repudiated prior to the discrepancy in order to progress their claims.
If you are a customer with a Home and Lifestyle, Home and Lifestyle Plus or Bespoke policy with Holiday Accommodation cover and would like to talk to us about a claim for loss of profits, please contact us.