Partially upheld: claim handling, misdiagnosis, poor communication, unreasonable claim rejection complaint against Millennium Insurance Company Limited
Financial Ombudsman decision DRN-6204056 of 2026-05-08T00:00:00+00:00. claim handling, misdiagnosis, poor communication, unreasonable claim rejection complaint against Millennium Insurance Company Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6204056 |
|---|---|
| Decision date | 2026-05-08T00:00:00+00:00 |
| Firm | Millennium Insurance Company Limited |
| Product | home cover insurance |
| Claim type | claim handling, misdiagnosis, poor communication, unreasonable claim rejection |
| Outcome | Partially upheld |
| Remedy | Millennium must pay Mr B a total of £600 compensation for distress and inconvenience caused by poor claim handling. Any compensation already paid can be deducted from this amount. |
Summary
Mr B complained about Millennium Insurance's handling of his home cover insurance claim following a boiler leak in December 2024. Over several months, Millennium arranged multiple engineer visits, misdiagnosed the issue, cancelled appointments, and provided inconsistent communication. After the leak was eventually resolved, Mr B experienced intermittent hot water problems which Millennium's engineer attributed to a blockage requiring a power flush—a cost excluded under the policy terms due to installation faults. Mr B eventually replaced his boiler at his own expense and sought compensation. The ombudsman upheld the complaint regarding poor claim handling and awarded £600 compensation for distress and inconvenience, but rejected claims for reimbursement of the boiler replacement cost and policy premium refund, finding Millennium's reliance on its engineer's expert assessment was reasonable.
The Ombudsman's reasoning
Millennium's engineer conclusions regarding the blockage and need for power flush were reasonable given the expert's on-site testing and experience, and the policy terms excluded such costs. Mr B's alternative evidence (quotes from other companies and post-replacement photographs) was not sufficiently persuasive to contradict the engineer's expert opinion. However, Millennium's claim handling was deficient, involving misdiagnosis, unnecessary visits, poor communication, and delays that caused Mr B considerable distress and inconvenience over a sustained period. The annual service was outside the insurance contract and carried out by a different underwriter, so Millennium could not be held responsible for failing to identify the missing magnetic filter. The policy provided multiple covers beyond the boiler, so a full premium refund was not justified despite the installation issues.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Millennium Insurance Company Limited, all decisions | 112 | 73% |
Source
Read the original decision on the Financial Ombudsman Service website