Not upheld: Travel / life insurance claim disputes complaint against AmTrust Specialty Limited

Decision detail

Summary

Mr B purchased a leasehold apartment in 2018 with a 10-year AmTrust warranty and experienced a roof leak shortly after moving in. The developer attempted multiple repairs between 2018 and 2023, all of which failed. In May 2024, after significant damage occurred, Mr B claimed under the warranty. AmTrust initially declined the claim stating the freeholder was responsible, then revised its position citing the Defects Insurance Period notification deadline had expired. The ombudsman found the claim failed to meet policy conditions as the defect was first discovered in 2018 and Mr B did not notify AmTrust until May 2024, well after the October 2020 deadline. The ombudsman upheld AmTrust's £300 compensation for poor communication but rejected Mr B's request for the claim to be honoured.

The Ombudsman's reasoning

The ombudsman found that the defect was first discovered in 2018, within the Defects Insurance Period (4 April 2018 to 4 April 2020), requiring notification to AmTrust by 4 October 2020. Mr B did not notify AmTrust until May 2024, failing to meet the policy conditions. The Structural Insurance Period claim also fails because the physical damage was first discovered before the SIP began, not during it. Although AmTrust's communication was poor, the £300 compensation offered is fair as it reflects the communication failings while acknowledging the claim outcome remains unchanged.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website