Upheld: Service failures generally complaint against HSB Engineering Insurance Limited

Decision detail

Summary

Mr and Mrs F complained about delays by HSB Engineering Insurance Limited in dealing with a building guarantee claim for their new-build home. They reported problems in November 2023, a technical report was provided in March 2024 recommending repairs within two months, but repairs remained incomplete by January 2025 when HSB issued its final response. HSB was aware the family had two very young children and the house was extremely cold. The ombudsman found HSB failed to ensure the claim was dealt with promptly, should have set clear deadlines for the developer, and should have prioritised the matter given the family's vulnerable circumstances. The complaint was upheld and compensation of £1,000 was ordered.

The Ombudsman's reasoning

HSB was ultimately responsible for ensuring the repairs were dealt with in a reasonable time under the policy terms. Although HSB was relying on the developer to carry out repairs and did chase for updates, it failed to set clear deadlines and ensure prompt resolution. By March 2024, Mr and Mrs F had a reasonable expectation that work would be completed within two months as recommended in the technical report. The failure to complete repairs over 10 months later (by January 2025) and over one year from initial contact was unreasonable. HSB should have prioritised the claim given the vulnerable circumstances of the family with two young children in a cold house, and should have given the developer a clear deadline in August 2024.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website