The insurer's position
Following a burst pipe, our customer's insurance company declined to pay for damage to antique furniture as it did not belong to the insured.
The definition of "contents" in the policy wording is extended to include "items which you are legally responsible for".
Our customer had an agreement with their family member that he would look after, and be responsible for, the furniture while stored at his home address.
The insurer agreed this part of the claim should have been covered. They originally asked for a written agreement to be provided between our insured customer and the family member to prove legal responsibility. We argued that verbal agreements are legally binding and there is no requirement in the insurance policy for this type of agreement to be in written form. As this was an agreement between the family a written contract would not necessarily be expected.
The insurer changed their position and paid the claim in full.