Partially upheld: Unknown / needs review complaint against Allianz Global Corporate & Specialty SE

Decision detail

Summary

T, a charity, complained about Allianz's handling of a commercial property insurance policy and flood damage claim. Allianz's broker S incorrectly included flood cover in the policy schedule when it should have been excluded, leading Allianz to decline T's flood damage claim in January 2025. T argued it lost the opportunity to arrange alternative flood cover or temporary repairs while Allianz considered the claim. The ombudsman found that both parties understood at renewal that flood cover was not included, based on the renewal invite and T's previous three years of policies without such cover, and that T had not demonstrated it would have purchased alternative cover. The ombudsman was not persuaded the delay in claim consideration caused material loss, as the extensive damage would likely have necessitated closure regardless. The complaint was partly upheld with £250 compensation awarded for inconvenience.

The Ombudsman's reasoning

The ombudsman found that while Allianz's broker made an error in including flood cover in the schedule, both parties understood at renewal that flood cover was not included, as evidenced by the renewal invite and T's previous three years of policies without flood cover. T had not demonstrated it would have purchased alternative flood cover had the correct schedule been sent. The ombudsman was not persuaded that the time taken to consider the claim caused T material loss, as T would likely have had to close regardless due to the extensive damage, and there was insufficient evidence that T could have arranged repairs or fundraising before the error was identified in January 2025. However, T experienced inconvenience from being led to believe the claim was valid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website