Upheld: wrongful claim decline and service failures (delayed payments, short notice, poor communication) complaint against National House-Building Council (NHBC)

Decision detail

Summary

Ms C and Mr C held a new build property warranty with NHBC. After cracking appeared in 2016 (handled correctly), cracks reappeared in 2018 and NHBC wrongly declined the claim citing thermal movement. In 2021, they made a further claim which was accepted in July 2023 following an engineer's report confirming the damage was due to a build defect. NHBC offered £450 compensation in 2025 for the wrongful decline and service failures. The ombudsman upheld the complaint, finding the compensation insufficient given the prolonged stress and uncertainty Ms C and Mr C experienced from 2018 to 2023, and increased the award to £850 total.

The Ombudsman's reasoning

The ombudsman found NHBC's arguments unconvincing that Ms C experienced no distress after the 2018 decline. The three-year gap before a new claim reflected Ms C's reasonableness in accepting expert opinion, not contentment. The ombudsman reasoned that Ms C and Mr C would have experienced prolonged stress and uncertainty from 2018 through July 2023 believing they would bear repair costs themselves, when in fact the claim was covered. This prolonged stress and worry about property damage, combined with service failures (late payments, short notice, poor communication about repair reports), justified compensation of £850 rather than £450.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website