Not upheld: incorrect advice on policy continuation after death; failure to correctly calculate cover period complaint against Utility Warehouse Limited

Decision detail

Summary

Following the death of Mr M's father, Utility Warehouse incorrectly advised that the 60-day home insurance cover period would run from the date of death notification (20 May) rather than the actual date of death (27 April), resulting in the property being uninsured from 28 June to 8 August. Although Utility Warehouse acknowledged the error and offered £100 compensation plus a pro rata refund, Mr M sought a higher award for the risk and stress caused. The ombudsman did not uphold the complaint because, while the incorrect advice was established and no actual claim occurred during the uninsured period, FOS rules prevent compensation awards for distress caused to an executor acting on behalf of an estate—only the estate itself as the eligible complainant could receive such compensation.

The Ombudsman's reasoning

The ombudsman acknowledged that Utility Warehouse gave incorrect advice which resulted in a period of uninsured cover. However, no actual financial loss occurred as no claim arose during the uninsured period. More significantly, under FOS DISP rules, only eligible complainants can receive compensation for distress and inconvenience. The eligible complainant in this case is the estate of the late Mr M, not Mr M himself as executor. While DISP rules allow an executor to bring a complaint on behalf of an estate, they do not permit compensation awards for distress caused to the executor personally. Therefore, the complaint could not be upheld.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website