Upheld: poor claims handling, inadequate assessment of damage, service failures, inadequate compensation complaint against Chaucer Insurance Company Designated Activity Company
Financial Ombudsman decision DRN-6039117 of 2026-04-27T00:00:00+00:00. poor claims handling, inadequate assessment of damage, service failures, inadequate compensation complaint against Chaucer Insurance Company Designated Activity Company. Outcome: Upheld.
Decision detail
| Reference | DRN-6039117 |
|---|---|
| Decision date | 2026-04-27T00:00:00+00:00 |
| Firm | Chaucer Insurance Company Designated Activity Company |
| Product | Home insurance |
| Claim type | poor claims handling, inadequate assessment of damage, service failures, inadequate compensation |
| Outcome | Upheld |
| Remedy | Chaucer must pay Mrs W £1,000 compensation for distress and inconvenience (from which the previously offered £250 may be deducted if already paid). Chaucer must reimburse Mrs W for outstanding items including garden gate, alarm system, snagging work, and garage door if not already paid. Chaucer must pay the cost of repointing the remaining boundary wall brickwork damaged in the flood, or carry out the work itself. If Mrs W uses her own contractors, Chaucer must pay the cheapest of three quotes provided. |
Summary
Mrs W claimed on her home insurance policy with Chaucer following a flood in October 2023 that rendered her property uninhabitable. Chaucer's claim handling was marked by avoidable delays, poor communication, unpaid invoices, and inadequate repairs including a faulty garage door, incomplete alarm system, and failure to properly assess flood damage to boundary walls. Mrs W was displaced from her home for several months longer than necessary and had to repeatedly chase Chaucer for updates. Chaucer offered £250 compensation which Mrs W rejected and referred to the FOS. The Ombudsman upheld the complaint, finding Chaucer breached FCA rules by failing to handle the claim promptly and fairly, and ordered £1,000 compensation plus reimbursement for all disputed works including full boundary wall repointing.
The Ombudsman's reasoning
The Ombudsman applied FCA ICOBS 8.1 rules requiring insurers to handle claims promptly and fairly, provide reasonable guidance, and settle claims promptly once terms are agreed. The Ombudsman found Chaucer failed to meet these standards through avoidable delays, poor communication, and inadequate assessment of flood damage. The video evidence clearly showed walls were submerged to a significant height, making it likely all boundary walls affected by the flood suffered damage requiring repointing. Chaucer failed to sufficiently demonstrate that claimed areas were not damaged by the flood or that valid exclusions applied. The Ombudsman considered that while some upset is expected with displacement claims, Chaucer's failures caused additional avoidable disruption. The Ombudsman also considered that Mr and Mrs W were elderly and vulnerable, making the impact substantially greater.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Chaucer Insurance Company Designated Activity Company, all decisions | 70 | 56% |
| Home insurance, all decisions | 20,668 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website