Not upheld: claim settlement valuation complaint against Covea Insurance plc

Decision detail

Summary

Mr P and Mrs P claimed for water damage to their ensuite bathroom under their home insurance policy with Covea. After their contractor declined to provide a cost breakdown for their £13,000 quote, Covea prepared its own scope of works and offered a cash settlement of £9,183.93, approximately £3,500 less than the contractor's quote. Mr P and Mrs P complained that the settlement was insufficient for the work to be carried out on a like-for-like basis. The ombudsman found Covea's settlement offer to be fair and reasonable, noting that Covea's scope covered similar items, used publicly available pricing, and appropriately accounted for labour and VAT. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found it reasonable for Covea to request a detailed cost breakdown, as this is standard practice for insurers. Given the contractor's refusal to provide this information, Covea's approach of preparing its own scope of works and cost assessment was reasonable. The ombudsman verified that Covea's scope covered similar items to the contractor's quote, used publicly available pricing for fixtures and fittings, and appropriately uplifted labour rates and included VAT. The ombudsman also noted Covea's willingness to reconsider if further evidence was provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website