I can assure you I have gone through this very process INCLUDING going to the Ombudsman... when you agree to terms and conditions the onus is on YOU to identify if any relevant clause(s) apply to you purchasing basic or enhanced insurance. In my instance the Ombudsman investigated the loss of my instrument and concluded that as PF's T&Cs excluded instruments it was my fault for still going ahead and paying for enhanced insurance (through them), I wasn't even entitled to their basic £20 cover as it was an item specifically included. Oh and I couldn't even get back my delivery fee!