Upheld: Home insurance claim disputes complaint against AXA Insurance Plc

Decision detail

Summary

Mr B and Mrs B claimed on their buildings insurance policy for damp damage in their 2017-built home. AXA declined the claim based on an October 2023 contractor report concluding the damage resulted from ground moisture rather than an insured peril. However, the ombudsman found multiple earlier reports (2021) provided evidence of a faulty washing machine pipe connection, which constitutes an insurable peril. The ombudsman determined AXA's reliance on the later report was unreasonable given the absence of typical rising damp indicators and the presence of earlier evidence pointing to an appliance leak. Additionally, AXA failed to consider the customers' accidental damage cover. The complaint was upheld and AXA was required to reassess the claim.

The Ombudsman's reasoning

The ombudsman found that multiple earlier reports provided evidence of a faulty washing machine pipe connection as the cause of damage, which constitutes an insurable peril. The October 2023 contractor report's conclusion about ground moisture was not persuasive given the absence of nitrate salts and chlorides that would typically be present in rising damp cases, particularly three years after initial inspection. The damage location around internal walls ruled out rainwater. Drainage surveys showed no underground drainage issues. Critically, AXA failed to consider that the customers had accidental damage cover. Therefore, AXA's claim decline was not fair or reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website