Upheld: Service failures generally complaint against Liverpool Victoria Insurance Company

Decision detail

Summary

Mr T and Mrs T complained about LV's handling of a home insurance claim for a water leak that proved difficult to locate. The claim involved a shared mains pipe with a neighbouring property, requiring cost-sharing negotiations with the landlord. LV arranged trace and access work but could not locate the leak, leading to a decision to reroute the pipework. The claim progressed slowly over several months, with Mr T's kitchen remaining partially dismantled during this period. LV asked Mr T to contact the landlord directly and initially only offered cash settlement or waiting for landlord agreement. The ombudsman upheld the complaint, finding LV should have been more proactive and should have paid for repairs upfront to seek reimbursement later, and ordered additional compensation of £250.

The Ombudsman's reasoning

While LV was not responsible for all delays, particularly those caused by the unresponsive landlord, it could have been more proactive in contacting the landlord itself rather than asking Mr T to do so. LV should have considered paying for the work and seeking reimbursement from the landlord sooner, rather than only adopting this approach after the complaint reached the FOS. The extended period with a partially dismantled kitchen, combined with Mr T's personal circumstances, caused greater impact than would normally be expected. The compensation previously offered did not adequately reflect the service failures for which LV was responsible.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website