Partially upheld: claim decline, policy cancellation, and poor service complaint against Accredited Insurance (Europe) Ltd

Decision detail

Summary

Mr S claimed on his home buildings insurance for water damage from a leak while he was on holiday. Accredited initially indicated the claim would be accepted but subsequently declined it and cancelled his policy after discovering he had failed to disclose ongoing building work (demolition and reconstruction of an extension). The ombudsman found that Accredited's policy terms requiring 30 days' advance notice of building works are fair and standard, and that Mr S's failure to disclose the work justified the claim decline and cancellation. However, the ombudsman upheld the complaint in part because Accredited's agent should not have indicated the claim would be accepted when this determination had not been made, causing Mr S distress and preventing earlier repairs. Accredited was ordered to pay £100 compensation for this poor service.

The Ombudsman's reasoning

The ombudsman found that Accredited's policy terms requiring disclosure of building works are standard and fair, as building works present heightened risks. Mr S had a clear contractual obligation to declare the building work at least 30 days before commencement, which he failed to do. The ombudsman was satisfied that had Mr S declared the work, Accredited would have cancelled the policy from the date work began. Therefore, the decline and cancellation were justified under the policy terms. However, the ombudsman found that Accredited's agent should not have indicated the claim would be accepted when this was not yet determined, causing Mr S distress and potentially preventing earlier repair arrangements. This poor service warranted compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website