Upheld: unfair settlement of insurance claim complaint against UK Insurance Limited trading as Direct Line

Decision detail

Summary

Mrs E and Mr N claimed on their home insurance policy after one bathroom wall tile was accidentally damaged. The matching tiles were discontinued, so they requested full bathroom replacement. UKI accepted the claim but offered only to replace the damaged tile and contribute 50% towards unaffected wall tiles. The ombudsman upheld the complaint, finding that while tiles are not covered under the matching sets and suites provision, fairness required UKI to extend its 50% contribution to the floor tiles, which were shown to match the wall tiles. UKI was directed to cover the damaged wall tiles fully and contribute 50% towards all unaffected wall and floor tiles.

The Ombudsman's reasoning

The policy's matching sets and suites cover does not include tiles, as tiles are not part of a bathroom suite. Therefore, UKI was only strictly obligated to replace the damaged tile. However, where an exact match is unavailable, it is reasonable for an insurer to contribute 50% towards replacing undamaged items in the set to compensate for loss of match. UKI's failure to extend this 50% contribution to the floor tiles, which were shown to match the wall tiles, was inconsistent and unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website