Not upheld: Home insurance claim disputes complaint against National House-Building Council (NHBC)

Decision detail

Summary

Mr and Mrs T claimed on their ten-year NHBC building warranty for a defective roof that had developed a crack causing water ingress. NHBC inspected the roof, confirmed the crack was causing water ingress, but declined the claim because the repair cost was below the policy's minimum claim value. Mr and Mrs T argued the entire roof was defective and that all contractors refused to patch repair it, saying it needed full replacement. The ombudsman upheld NHBC's decision, finding that while the roof was defective, the policy only covers damage causing water ingress if repair costs exceed the minimum threshold, and the limited damage at the point of claim fell below this threshold.

The Ombudsman's reasoning

The ombudsman found that while Mr and Mrs T's roof was defective and causing water ingress, the policy only covers damage to the roof covering if it causes water ingress, and only if the repair cost exceeds the minimum claim value. Although water ingress was occurring from a crack, NHBC demonstrated the repair cost was below the minimum threshold, meaning NHBC had no liability under the policy terms. The ombudsman acknowledged the outcome seemed harsh but noted the warranty is restrictive in nature and does not cover defects throughout its life.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website