Not upheld: unfair exclusion of cover / underwriting decision complaint against Aviva Insurance Limited

Decision detail

Summary

Ms W complained that Aviva unfairly excluded flood cover from her home insurance policy at renewal in January 2025, despite providing it when the policy was initially taken out in 2024. Aviva declined to provide flood cover because the property, built in 2018, was assessed as at risk of surface water flooding and was ineligible for Flood Re coverage (which only applies to properties built before 1 January 2009). Ms W argued the exclusion was unfair given she had made no claims, undertaken drainage improvements, and that government risk assessments and a commissioned survey showed very low flooding risk. She also alleged discrimination under the Equality Act 2010. The ombudsman found Aviva acted fairly and reasonably by applying its underwriting criteria consistently, providing adequate notice of the exclusion, and treating Ms W the same as other customers in similar circumstances. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that insurers are entitled to decide what risks they will cover and on what terms. Aviva acted in line with its internal processes and treated Ms W consistently with other customers in similar circumstances. The property's 2018 build date made it ineligible for Flood Re, which was the determining factor. The ombudsman noted that Aviva's flood mapping indicated surface water risk at the time of renewal (January 2025), before the government's later downgrade in Spring 2025. The ombudsman rejected the discrimination claim, noting that neighbours' properties may have been built before 2009 and therefore eligible for Flood Re, and that each insurer makes independent underwriting decisions. Aviva provided adequate notice of the exclusion, allowing Ms W to seek cover elsewhere.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website