Upheld: unfair claim decline - misapplication of policy exclusion complaint against British Gas Insurance Limited
Financial Ombudsman decision DRN-6088738 of 2026-06-10T00:00:00+00:00. unfair claim decline - misapplication of policy exclusion complaint against British Gas Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6088738 |
|---|---|
| Decision date | 2026-06-10T00:00:00+00:00 |
| Firm | British Gas Insurance Limited |
| Product | Home insurance |
| Claim type | unfair claim decline - misapplication of policy exclusion |
| Outcome | Upheld |
| Remedy | BG must: (1) Reconsider Mr P's claim for replacement radiators under the remaining policy terms; (2) Pay Mr P total compensation of £250 for unnecessary distress and inconvenience caused, with the previously offered £130 deductible from this amount. |
Summary
Mr P complained that BG unfairly declined his claim to replace four radiators (three vertical aluminium, one horizontal steel) under his HomeCare policy, claiming they were designer radiators. BG argued the radiators were non-standard due to their vertical orientation and design aesthetic. The ombudsman upheld the complaint, finding the radiators do not meet the policy's definition of designer radiators as they are made of standard materials, have regular rectangular shapes, and lack particular artistic design. The policy definition contains no reference to orientation, making BG's reliance on this factor unreasonable. BG was ordered to reconsider the claim and pay £250 compensation for unnecessary distress and inconvenience caused by the unfair decline.
The Ombudsman's reasoning
The ombudsman found that the policy definition of 'designer radiator' requires one of three conditions: particular artistic design, intricate shape, or specific materials. Mr P's radiators met none of these criteria - they are made of standard materials (aluminium and steel), have a regular rectangular shape (not intricate), and do not possess particular artistic design. The ombudsman rejected BG's argument that vertical orientation alone makes a radiator designer, as the policy definition contains no mention of orientation. The ombudsman was not persuaded by BG's reliance on market terminology or the 2021 replacement as evidence that these radiators are designer products. The unfair claim decline caused unnecessary distress and further delayed resolution of Mr P's heating problems.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| British Gas Insurance Limited, all decisions | 1,877 | 41% |
| Home insurance, all decisions | 20,668 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website