Upheld: Home insurance claim disputes complaint against AXA Insurance Plc

Decision detail

Summary

Ms S claimed on her commercial property insurance following fire damage in July 2022. AXA accepted the claim but the settlement process took approximately one year, with significant delays between February and July 2023 in processing estimates and making an offer. Although the internal damage was limited to smoke contamination requiring redecoration, it was sufficient to prevent Ms S from renting the property to new tenants. The ombudsman upheld the complaint regarding delays, finding AXA responsible for approximately 14 weeks of delay, and ordered compensation equivalent to 14 weeks' lost rental income plus interest, while rejecting the loss of rent claim as the property was not uninhabitable under policy terms.

The Ombudsman's reasoning

The ombudsman found that while loss of rent was not payable under policy terms (as the property was not uninhabitable), AXA was responsible for approximately 14 weeks of delay in handling the claim. The internal damage, though not severe enough to render the property uninhabitable, was sufficient to make it difficult to find new tenants willing to move in. The delays between February and July 2023 in processing estimates and making settlement offers were attributable to AXA. Ms S would have secured new occupants sooner but for these delays, and therefore should be compensated for the additional lost rental income during the delay period.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website