Not upheld: GAP / warranty insurance mis-selling complaint against National House-Building Council (NHBC)

Decision detail

Summary

Ms L complained to NHBC about a new-build warranty policy that had not been activated by her solicitor when she identified structural and vibration-related defects in her property. She sought confirmation of cover, a property inspection, and activation of the policy's Resolution Service to remedy the defects. NHBC confirmed the policy was activated on 20 October 2025 and declined to use the Resolution Service, stating the builder was responsible for remedying defects in the first two years. Ms L brought the complaint to the FOS, arguing she was uninsured and misled. The ombudsman found no evidence of NHBC-caused delay in activation, that the policy documentation recorded cover from 27 June 2025, and that Ms L suffered no financial loss. The ombudsman also found the Resolution Service aspect falls outside its jurisdiction as it is not a regulated activity.

The Ombudsman's reasoning

The ombudsman found that while there was an issue with policy registration and activation, there was no persuasive evidence that any delay was caused by NHBC's error. The policy documentation ultimately issued records cover from 27 June 2025, and NHBC never indicated that a valid claim arising during that period would have been declined due to the timing of final documentation. Ms L did not suffer financial loss as a result of the activation delay, as NHBC declined her Resolution Service claim for separate reasons unrelated to the registration issue. The Resolution Service aspect of the complaint falls outside the ombudsman's jurisdiction as it is not a regulated activity.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website