Not upheld: policy non-renewal and cancellation complaint against UK Insurance Limited

Decision detail

Summary

Miss S complained that UKI cancelled her home buildings insurance policy, preventing her from making a claim for water damage. UKI had placed a renewal bar on the policy due to arrears on a previous motor insurance policy. Although the renewal invite was not sent due to a system issue, UKI sent two reminder letters to Miss S's correct address on 31 January and 7 February 2025 informing her she needed to contact them to renew. Miss S did not contact UKI and paid no premiums from February 2025 until attempting to claim in August 2025. The ombudsman did not uphold the complaint, finding that UKI communicated clearly about the renewal requirement and Miss S had the opportunity to ensure cover was in place but failed to do so.

The Ombudsman's reasoning

The ombudsman found that UKI communicated clearly through two reminder letters sent to Miss S's correct address, informing her that she needed to contact UKI to renew her policy. Although the initial renewal invite was not sent due to a system issue, the reminder letters adequately informed Miss S of the action required. Since Miss S did not contact UKI to renew, the non-renewal was not unfair. The ombudsman also noted that Miss S's failure to pay premiums from February 2025 onwards should have alerted her to contact UKI to query the issue. The renewal bar, while not clearly explained, was ultimately moot given that Miss S was informed she needed to take action to renew.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website