Not upheld: Service failures generally complaint against British Gas Insurance Limited
Financial Ombudsman decision DRN-6131414 of 2026-06-23T00:00:00+00:00. Service failures generally complaint against British Gas Insurance Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6131414 |
|---|---|
| Decision date | 2026-06-23T00:00:00+00:00 |
| Firm | British Gas Insurance Limited |
| Product | Home insurance |
| Claim type | Service failures generally |
| Outcome | Not upheld |
| Remedy | £800 compensation for distress and inconvenience; £720 reimbursement for third-party contractor costs with 8% simple interest from 6 August 2025 to date of payment; British Gas to cooperate with Mr G's household insurer regarding property damage claims. |
Summary
Mr G complained about British Gas Insurance's failure to diagnose a hot water leak under his kitchen floor for over three years, despite multiple engineer visits from 2022 to 2025. The leak caused hot water to come from cold taps and Mr G claimed increased utility bills and property damage. British Gas initially offered inadequate compensation (£300-£500) but increased it to £800 when the complaint reached the FOS. The ombudsman found service failures and missed diagnostic opportunities but determined the improved offer of £800 compensation plus £720 reimbursement with 8% interest was fair and reasonable, as evidence of elevated bills was inconclusive and property damage claims should be pursued through Mr G's household insurer.
The Ombudsman's reasoning
The ombudsman acknowledged service failures and missed diagnostic opportunities but found that British Gas's improved compensation offer of £800 was fair and reasonable for the distress and inconvenience caused. While the issue should have been resolved at least a year earlier, the evidence regarding elevated bills was unclear and inconclusive. The ombudsman found insufficient expert evidence to establish that the service failure caused property damage, and directed Mr G to pursue this claim through his household insurer.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| British Gas Insurance Limited, all decisions | 1,882 | 40% |
| Service failures generally, all decisions | 34,193 | 32% |
| Home insurance, all decisions | 20,959 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website