Upheld: poor claim handling, avoidable delays, inadequate communication complaint against Soteria Insurance Limited

Decision detail

Summary

Mr and Mrs D complained about Soteria Insurance Limited's handling of a subsidence claim on their home, which had been ongoing since 2020. During the relevant period from August 2023 to June 2025, Soteria caused avoidable delays and communicated poorly, though it conceded these failings and paid £750 compensation. The ombudsman found this insufficient given the claim was already in years three to five and the customer's reasonable expectations for prompt action and proactive communication. The ombudsman upheld the complaint and ordered total compensation of £1,000, with £250 additional payment required beyond the £750 already paid.

The Ombudsman's reasoning

Soteria failed to handle the claim promptly and fairly during the relevant period of almost two years (years three to five of the claim). While the firm conceded avoidable delays and poor communication and paid £750 compensation, the ombudsman found this insufficient given the extended timeframe of the claim and the customer's reasonable expectation of prompt progression and proactive communication. The ombudsman was satisfied that Soteria's agreed next steps (investigating drainage, reviewing garage damage, continuing monitoring) and its position on remaining trees were fair and reasonable, as they were based on professional investigation rather than mere proximity of trees to the building.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website