Not upheld: Service failures generally complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Miss D claimed on her home buildings insurance for a defective waste pipe and LV arranged repairs, but Miss D was unhappy with the standard of work. A surveyor confirmed deficiencies including insufficient expansion gaps and below-standard overlap joints. Miss D obtained a quote from her own contractor that was significantly higher and included floor levelling, which LV refused to pay for. LV offered either remedial repairs by its contractors or a cash settlement equivalent to what its contractors would charge, plus £200 compensation. The ombudsman did not uphold Miss D's complaint, finding LV's offer fair and reasonable under the policy terms, as the additional cost in Miss D's quote constituted betterment not covered by insurance.

The Ombudsman's reasoning

The ombudsman acknowledged that LV's repairs required remedial work but found it reasonable for LV to offer either remedial repairs or a cash settlement in line with policy terms. The ombudsman rejected Miss D's request for payment of her contractor's higher quote because it included betterment (floor levelling), which would put her in a better position than before the loss and is not covered by the policy. The ombudsman found LV's offer of remedial work or cash settlement, combined with £200 compensation, to be fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website