Tesco Home Insurance Review

Overall Rating

They do exist!

They don't like paying out.

When I bought my son a new mountain bike for Christmas, I rang Tesco Home Insurance to see if it would be covered by my contents insurance. It wasn't, so I had the policy changed especially to cover it. The payments went up of course, but I figured it would be worth it. Sure enough, in May the bike was stolen. When I arranged the cover I made it quite clear that I had purchased the bike from Halfords in a half price sale at £100, and as they did new for old it would therefore be £200 to replace. When I tried to claim for a new one however, I was told that the maximum they would allow was £100 minus the £15 excess. This meant that I was left with £85 to replace a £200 bike! There was also £97 in accessories on the bike. This included a speedo/computer, lights, stand, helmet, D lock and mudguards, which we had paid extra for. I was told that they could not pay out for any of these as they were bike accessories and not covered. I explained that I also had £2,500 non-specified items cover on my policy. They still wouldn't let me claim for any of it! There then followed two weeks of phone calls, arguments, and promises of return calls that never came. I complained persistently all this time, and eventually they said they would listen to the phone call I made to arrange the cover. Still they never got back to me, but the company who replaces the bikes for them did. They had decided to allow me £200 less the £15 excess. Oh good, so I was telling the truth then! They must have found the recording of the original call. Thank goodness.

A replacement bike is now on it's way. The amount of calls I had to make over this I could have bought one! If you are thinking of taking out insurance with Tesco my advice would be to go over the conditions of claiming several times with them and make absolutely sure there is no way they can wriggle out of paying, because if they can, they will! I am totally disgusted. Tesco should be thoroughly ashamed of themselves! Never again.

Members' Comments onNigelfnn's Review

• Nigelfnn on 14th Jul 2006

  Sorted out now but hell of a performance!

• EBROOKS on 28th Jul 2006

  Quite a story! I am a licensed adjuster but in another country. But it should be the same in England on the basic concept of value, the loss is paid at replacement cost. So the amount you paid for it is irrelevant. If you got a bargain, that is irrelevant.
  
  Replacement cost is actual replacement cost less depreciation.
  
  I assume you have an insurance commissioner or the equivalent where you live. Consider making a complaint.
  
  You may also have recourse to a legal claim against this company (assuming all the ducks are lined up the way I am assuming they are) for what is called here "bad faith".

• EBROOKS on 28th Jul 2006

  By the way, it is very hard for me to understand that a bicycle owned by the family is not covered under the unscheduled personal property coverage of your policy.
  
  If it was stolen while on the family premises, there would be nothing to distinguish it from other family unscheduled personal property.
  
  If it was stolen while off the premises, there is sometimes a reduction in the limit but even the reduced limit would be far more than enough to cover a bicycle.
  
  You don't mention any particular exclusions or special limits, so as I understand the situation the bicycle was simply not covered.
  
  If it was not covered then I would think NOTHING was covered.
  
  Have you read your policy carefully?