Not upheld: claims handling - dispute over settlement offer, scope of works, and alleged unprofessional conduct by loss adjuster complaint against Tesco Underwriting Limited

Decision detail

Summary

Mrs W claimed for water damage to her ground-floor rooms caused by a leaking hot water pipe. Tesco's loss adjuster made a settlement offer of £3,848.64, which Mrs W disputed, claiming the scope of works was insufficient and that the loss adjuster acted unprofessionally. The parties disagreed on the drying schedule and need for further moisture testing. Tesco made a final offer of £4,774.17 net of VAT. The ombudsman did not uphold the complaint, finding that the scope of works cannot be fairly assessed until drying works are complete and further testing is conducted, and that the allegations of unprofessional conduct lacked sufficient evidence. The ombudsman recommended that Tesco proceed with further testing to determine appropriate drying methods before finalising the scope.

The Ombudsman's reasoning

The ombudsman determined that the scope of works cannot be fairly assessed until drying works are complete and further testing is conducted, as hidden or secondary damage may emerge during the drying process. Regarding the allegations of unprofessional conduct, the ombudsman found insufficient evidence to support that the loss adjuster acted inappropriately, noting that disagreements about the way forward do not necessarily constitute unprofessionalism, and that some alleged gestures may have been misconstrued. The ombudsman agreed with Tesco's recommendation for a revisit to determine moisture levels and proper drying approach before finalising the scope.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website