Now you have it, now you don't: Sue Fieldman on the phantom Halifax contents cover that vanished with the burglars

The cost of a buildings policy has dropped by 10.1 per cent over the year, with the cost of a contents policy falling by 8.2 per cent (Rex)

ANDREW CROKER and his family were burgled recently. Thousands of pounds worth of treasured possessions were stolen from their home.

But the distress suffered by the Croker family has been made a million times worse by the behaviour of Halifax Building Society.

The contents insurance they thought had been arranged for them by Halifax was not in force, even though Mr Croker did everything he could to double-check that the policy had been affected. The family is thousands of pounds out of pocket.

In early 1993, Mr Croker and his wife Joanna, who live in south-west London, decided to transfer their mortgage to the Halifax. The mortgage was arranged through their accountant.

The couple also wanted to transfer their insurance to the Halifax. They completed an application form for a Halifax insurance called Xtracover, which offered both buildings and contents insurance.

But on 23 April Halifax wrote to say the mortgage offer was in conjunction with 'buildings and Accidental Damage Insurance not Xtracover'.

The reason for the change was that the maximum amount insurable under the Xtracover policy was pounds 150,000 and their property was valued at pounds 230,000.

Halifax had enclosed a leaflet and application form for a contents insurance policy, Contents Xtra, but all the couple were told was to advise the society if they wanted to take out this insurance.

Mr Croker says: 'The Halifax decided to transfer the buildings and accidental damage elements to a different Halifax policy. They were seemingly able to affect this transfer without informing me or obtaining my instructions.

'I therefore automatically assumed that if Halifax had transferred the buildings cover they would also deal with the contents insurance in the same way.'

The new mortgage account was opened on 1 June 1993. When the first direct debit payment was made, Mr Croker was anxious to double-check the position regarding his insurance.

His accountant is adamant that Halifax told him that the couple had Halifax Xtracover High Risk Buildings and Contents Insurance - both buildings and contents cover. The premium confirmed by the branch was the same as in the couple's mortgage offer.

The accountant then sent a confirmatory fax to the Halifax branch. The Halifax reply confirmed 'the insurance premium of pounds 46.96' and enclosed 'details of our Xtracover High Risk policy which has also been requested'.

Relying on the information from Halifax and confident that he had both buildings and contents insurance, Mr Croker cancelled his old policy.

Then in September the family home was burgled. Personal possessions, including Mrs Croker's jewellery and jewellery given to the children for their christenings, were stolen. Mr Croker reckons that about pounds 14,000 worth was taken.

Mr Croker contacted Halifax for a claim form. He was immediately told he did not have any contents cover.

The reason for the lack of cover - Mr Croker had not completed the proposal form for the Contents Xtra policy sent in the earlier letter.

Mr Croker is furious. He says: 'Halifax knew I needed cover for both buildings and contents when the original Xtracover application was sent to them.

'They acted completely unilaterally to transfer the buildings element to a different policy without pointing out to me that such a policy did not afford me any contents cover at all.'

Mr Croker has complained to Halifax and asked for an indemnity in respect of the losses he suffered in the burglary.

Halifax denies responsiblity. However, during correspondence Halifax has expressed sympathy with Mr Croker's situation and asked the insurer if it would consider backdating contents cover and deal with the claim. The insurer refused.

Halifax has also made a tentative offer to settle the matter, but the figure was way below what Mr Croker was asking. The situation has reached stalemate, and Halifax has suggested Mr Croker take his case to the Building Society Ombudsman.

A Halifax statement says: 'The mortgage was completed on the basis of buildings and accidental damage cover only. The policy documentation stated this. In our letter of 23 April we enclosed a proposal form for Contents Xtra to cover the situation of not being able to offer Xtracover - we have never received a completed Contents Xtra proposal form.'

(Photograph omitted)