Not upheld: claims handling delays and service failures complaint against Society of Lloyd's trading as Lloyd's of London

Decision detail

Summary

M Trust claimed on a home insurance policy underwritten by SOL following a fire in February 2021. While SOL accepted the claim and completed repairs, the work extended significantly beyond the revised completion date of July 2023, with the property not handed over until January 2025. M complained about delays and sought damages of approximately £250 per week based on a building contract clause. SOL acknowledged service failings and offered £750 compensation. The ombudsman found that while delays were avoidable, M failed to substantiate any financial losses from the delays, and compensation for distress was inappropriate because M is a trust entity rather than a natural person capable of experiencing distress.

The Ombudsman's reasoning

The ombudsman determined that while SOL's obligations under the insurance policy were to indemnify M for losses caused by the insured fire event (which they did by repairing the house), any additional financial losses must be substantiated. M failed to provide persuasive evidence of intended property sale or rental, or quantifiable financial losses from the delays. The ombudsman also found that compensation for distress or inconvenience was not appropriate because M is a trust (not a natural person capable of experiencing distress), and the trustees were acting in their capacity as trustees rather than in personal capacities.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website