Partially upheld: service complaint, claim handling delays, renewal process complaint against Red Sands Insurance Company (Europe) Limited

Decision detail

Summary

Mr V and Mrs K complained about Red Sands' response to their home insurance claim following a fire loss event. The complaint centered on avoidable delays in claim progression, service failings, and concerns about policy renewal during the claims process. The Ombudsman partially upheld the complaint, awarding £700 compensation for service failings and delays while declining to determine the claim settlement figure or set settlement deadlines, as these fall outside the FOS remit. The renewal process was found to be handled fairly with appropriate customer notifications. The Ombudsman noted that Mr V and Mrs K could refer future complaints about claim settlement delays to the FOS if necessary.

The Ombudsman's reasoning

The Ombudsman upheld the complaint regarding service failings and avoidable delays in claim progression, accepting the Investigator's recommendation for £700 compensation. However, the Ombudsman declined to determine the claim settlement figure or set deadlines for settlement, as this falls outside the FOS remit. The renewal process was found to be fair and reasonable, with Red Sands providing adequate notice and multiple opportunities to renew. The Ombudsman noted that while there were claim delays attributable to Red Sands, some delays were also contributed to by Mr V and Mrs K or their representative, and therefore declined to award interest on the claim settlement to avoid prejudicing their future position.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website