Not upheld: claim handling and service failures complaint against UK Insurance Limited (UKI)

Decision detail

Summary

Mrs E claimed on her buildings insurance policy following a leak through her kitchen floor that originated from her neighbour's property. She complained about poor communication, slow claim progression, and confusion over repair timelines and alternative accommodation arrangements. UKI paid £500 compensation and issued final response letters acknowledging some service failings. The ombudsman found that while the situation was difficult, most delays were outside UKI's control due to the third-party nature of the leak, and UKI properly enforced the £25,000 policy limit for alternative accommodation. The complaint was not upheld, and the £500 compensation was deemed fair for the service failings identified.

The Ombudsman's reasoning

The ombudsman found that while the situation was difficult for Mrs E, the main delays and complications were largely outside UKI's control due to the leak originating from the third-party property. UKI was entitled to enforce the policy limit of £25,000 for alternative accommodation, and retaining funds for future accommodation needs when repairs are carried out was reasonable. Although there were occasional service failings such as unreturned calls, the £500 compensation already paid fairly reflected the distress and inconvenience caused by these failings. The ombudsman did not consider it appropriate to award additional compensation given the policy constraints and the circumstances beyond UKI's control.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website