Upheld: Home insurance claim disputes complaint against U K Insurance Limited

Decision detail

Summary

Mr and Mrs H complained about UK Insurance Limited's handling of their landlord insurance claim for subsidence damage made in October 2022. The claim involved damage caused by two trees: one belonging to Mrs H (removed in March 2023) and one belonging to a neighbour who refused removal despite UKI's efforts. Over three years later, repairs had not been completed, and Mrs H was unable to sell the property and had to rent it at reduced rates. The ombudsman found UKI caused significant avoidable delays by taking nearly two years to gather evidence, interrupting monitoring without proceeding with repairs, and failing to authorise necessary investigations promptly. The ombudsman upheld the complaint and required UKI to consider alternative solutions, refund rental payment differences from August 2024, pay 8% interest, and pay £1,000 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that while subsidence claims can take considerable time, UKI failed to progress the claim efficiently and caused avoidable delays. Specifically: (1) UKI took nearly two years (until September 2024) to gather sufficient evidence about the third-party tree, when one year from March 2023 would have been reasonable; (2) UKI interrupted monitoring multiple times without proceeding with repairs or alternative mitigation, causing avoidable delay; (3) UKI did not authorise necessary site investigations until October 2023, nearly a year after acknowledging they were needed; (4) UKI did not consider alternative solutions to stabilise the property despite having sufficient time and information; (5) UKI did not offer temporary repairs until September 2024, much later than reasonable. The ombudsman concluded that with proper handling, the claim would likely have been concluded by August 2024.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website