Upheld: GAP / warranty insurance mis-selling complaint against National House-Building Council

Decision detail

Summary

Mrs B claimed under her NHBC Buildmark warranty for damage to her property caused by a blockage in a surface water drain. NHBC declined the claim in January 2024 and again in January 2025, arguing the damage was not caused by a defect in below-ground drainage for which Mrs B was responsible. The ombudsman found that while NHBC's claim handling involved poor communication and avoidable delays, the claim decision was fair because evidence showed the defect causing the blockage was located outside Mrs B's property boundary in the neighbouring property's curtilage. The ombudsman rejected Mrs B's arguments about defective installation of the entire drainage system and common parts cover. The complaint was upheld only regarding service failures, with compensation increased from £150 to £300 total.

The Ombudsman's reasoning

The ombudsman upheld the complaint regarding service failures but maintained the claim decision was fair. The policy covers damage caused by defects in below-ground drainage for which the policyholder is responsible. The evidence shows the defect causing the blockage and damage was located outside Mrs B's property boundary in the neighbouring property's curtilage, therefore outside her area of responsibility. Although NHBC's handling involved delays and poor communication, these service failures do not render the claim decision unfair. The ombudsman rejected Mrs B's arguments that the entire drainage system was defectively installed, finding no conclusive evidence of this. The ombudsman also rejected claims regarding common parts cover as the drainage system, while shared, was not shown to be Mrs B's legal responsibility to maintain with other homeowners.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website