Not upheld: claim handling and settlement fairness complaint against Tesco Underwriting Limited

Decision detail

Summary

Mr S claimed on his contents insurance with Tesco Underwriting Limited in May 2025 for damage caused by CCTV wiring work, including burning damage to carpet and smoke odour affecting floorboards, bed, mattress, and mechanical base. Tesco settled parts of the claim totalling over £10,000 based on photographs and quotes provided, but declined to pay for claimed floorboard damage as photographs showed no visible damage. Mr S complained that Tesco should have conducted a site inspection, that initial discussions amounted to a verbal promise of coverage, and raised concerns about service delays and alleged discrimination. The ombudsman found Tesco's approach reasonable, the evidence insufficient to support floorboard damage claims, and the £350 compensation for service issues appropriate, declining to uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Tesco's approach to validating the claim through photographs and quotes was common and reasonable practice. While acknowledging smoke damage may not always be visible, the ombudsman required persuasive evidence of damage that should be covered under policy terms, which was not demonstrated for the floorboards or wider room damage. The ombudsman rejected the argument that initial discussions amounted to a guarantee of coverage, noting that evidence was still required for claim validation. The ombudsman found no evidence of unfair treatment based on race and determined the £350 compensation for service issues was fair and reasonable given the impact Tesco was responsible for.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website