Upheld: Motor insurance, claim handling complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr T claimed on his home buildings insurance policy following a kitchen leak discovered in June 2025. Although Advantage accepted the claim and arranged an inspection promptly, it caused unnecessary delays in arranging drying work (six weeks from initial visit) and in authorising the scope of repairs (over three weeks), adding approximately two months to the overall claim. These delays required Mr T and his family to move to alternative accommodation multiple times during an already stressful period. Advantage initially paid £300 compensation and later offered an additional £200 (total £500), acknowledging delays and poor communication. The ombudsman upheld the complaint but found the £500 offer, combined with the firm's agreement to consider additional costs with supporting evidence, to be fair and reasonable compensation for the disruption caused.

The Ombudsman's reasoning

The ombudsman found that while Advantage reasonably validated the claim within an appropriate timeframe, it caused unnecessary delays in arranging drying work (six weeks from initial visit) and in authorising the scope of works (over three weeks). These delays added approximately two months to the claim and required Mr T and his family to move to alternative accommodation multiple times during an already stressful experience. The ombudsman acknowledged poor communication from Advantage and agreed compensation was warranted. However, the ombudsman considered £500 in total compensation to be reasonable and reflective of the additional disruption caused by poor claim handling, particularly given the inherent stress of dealing with water damage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website