Not upheld: policy administration error and unfair communication complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Ms C complained about how LV administered her home insurance policy after they incorrectly updated it in June 2025 based on false information that children lived in her home. When Ms C corrected this error and sought clarification, LV failed to respond to her multiple inquiries in a timely manner. LV eventually acknowledged the mistake, corrected the policy, and paid £150 compensation. The ombudsman found LV acted unfairly in their communication but determined the compensation already paid was reasonable, resulting in the complaint not being upheld.

The Ombudsman's reasoning

The ombudsman found that LV made a mistake by updating Ms C's policy based on incorrect occupancy information and should not have issued the letter at all. While LV eventually corrected the error, the ombudsman found LV acted unfairly by not responding to Ms C's multiple inquiries in a timely manner, which amplified the distress caused by the initial mistake. However, the £150 compensation already paid was deemed reasonable for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website