Not upheld: Home insurance claim disputes complaint against Allianz Global Corporate & Specialty SE

Decision detail

Summary

Mr J and Ms L claimed on their Sailing Boat Cover insurance policy for damage to their boat's rigging, rudder and radar sustained during moderate to heavy seas. AGC declined the claim relying on the wear and tear exclusion. Mr J accepted the decline for rigging and radar but disputed the rudder damage decline, providing a report from boat services company B suggesting the damage was caused by a sudden rogue wave event rather than wear and tear. The ombudsman found AGC acted fairly in maintaining their position, as a properly maintained rudder should withstand heavy seas, and the report from B lacked sufficient independence and photographic evidence to persuade AGC otherwise.

The Ombudsman's reasoning

The ombudsman determined that a reasonable assumption is that a boat's rudder, being an integral part of mechanical function, should be able to withstand heavy seas and large waves, particularly when the boat was being used in a World Rally. While the report from B indicated no corrosion, the ombudsman found it was not provided entirely independently as Mr J paid for the services, an amended version was provided after the investigator's view, and it lacked photographic evidence of pre-repair damage. The ombudsman concluded that another insurer would likely have taken the same decision in similar circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website