Not upheld: unfair claim decline - storm damage complaint against Lloyds Bank General Insurance Limited trading as Halifax

Decision detail

Summary

Mrs M claimed for storm damage to her home under a Halifax home insurance policy. Lloyds initially declined the entire claim but later agreed to cover internal damage while maintaining the decline for external damage. Mrs M complained about the surveyor's conduct and the continued decline of external damage. The ombudsman found that weather data showed maximum windspeed of 31 mph, significantly below the policy's 55 mph storm threshold, and that the surveyor's report indicated the damage resulted from wear and tear and water ingress over time rather than a one-off storm event. The ombudsman upheld Lloyds' decision to decline external damage and found its handling of the internal damage claim and £100 compensation payment to be fair and reasonable.

The Ombudsman's reasoning

The ombudsman applied the three-part test for storm claims: whether storm conditions occurred, whether damage is consistent with storm damage, and whether storm was the main cause. The windspeed of 31 mph fell significantly short of the policy's 55 mph threshold, and rain alone without strong winds would not typically cause damage to a well-maintained property. The surveyor's findings indicated wear and tear and water ingress over time rather than a one-off storm event. Lloyds fairly reassessed and accepted the internal damage claim under different policy criteria and paid compensation for the initial decline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website