Not upheld: Unknown / needs review complaint against Lloyds Bank Insurance Services Limited

Decision detail

Summary

Mrs D purchased a buildings insurance policy online from LBIS and subsequently made a claim for structural damage caused by bad weather. The insurer declined the claim because the weather did not meet the policy's storm definition and Mrs D lacked accidental damage cover. Mrs D complained that LBIS had mis-sold the policy by leading her to believe it would cover structural damage. The ombudsman found that LBIS had provided clear, appropriate information including policy documents stating that structural damage was covered, but that it was reasonable for such coverage to be subject to specific causes and exclusions. The ombudsman upheld LBIS's position that the policy was sold fairly and declined to uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that LBIS provided clear, fair, and not misleading information about the policy as required by regulatory rules. While the policy documents stated that structural damage was covered, no insurance policy covers every eventuality. The policy covered structural damage but only depending on the cause of damage and the specific terms and conditions applicable to that cause. The ombudsman considered it reasonable that structural damage coverage would be subject to these limitations and exclusions, which is standard practice in home insurance. The ombudsman noted that the claim decline was the responsibility of the insurer, not LBIS.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website