Partially upheld: claims handling - delays, pre-existing damage exclusion, personal belongings coverage, loss of use complaint against Watford Insurance Company Europe Limited
Financial Ombudsman decision DRN-6235508 of 2026-04-13T00:00:00+00:00. claims handling - delays, pre-existing damage exclusion, personal belongings coverage, loss of use complaint against Watford Insurance Company Europe Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6235508 |
|---|---|
| Decision date | 2026-04-13T00:00:00+00:00 |
| Firm | Watford Insurance Company Europe Limited |
| Product | insurance |
| Claim type | claims handling - delays, pre-existing damage exclusion, personal belongings coverage, loss of use |
| Outcome | Partially upheld |
| Remedy | Watford must: (1) Reimburse all receipted travel and hire costs incurred while Mr M was without his car, plus 8% simple interest from date incurred; (2) Reimburse all receipted personal belongings covered under the policy; (3) Pay £200 compensation for distress and inconvenience (less any amount already paid); (4) Pay compensation within 28 days with additional 8% simple interest if paid later; (5) Provide tax deduction certificate if required by HMRC. |
Summary
Mr M complained about Watford Insurance's handling of his claim following theft and recovery of his damaged car. Watford refused to repair pre-existing damage identified by an independent engineer, denied a courtesy car and travel cost reimbursement because Mr M used his own garage, and rejected claims for personal items. The ombudsman upheld Watford's decision on pre-existing damage as reasonable but found their two-month delay in authorising repairs unjustified, requiring reimbursement of travel costs and covered personal belongings (wireless car play adapter and phone charger), plus £200 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman determined that Watford's reliance on a detailed independent engineer's report was reasonable regarding pre-existing damage, as no contrary expert evidence was provided. However, the ombudsman found that Watford's two-month delay in authorising repairs caused significant inconvenience to Mr M who had a young baby and no other vehicle. The ombudsman held that insurers must reimburse loss of use expenses when they cause delays, regardless of policy terms about courtesy cars. Regarding personal items, the ombudsman reviewed the policy exclusions and found that the wireless car play adapter and phone charger did not fall within the excluded categories (laptops, mobile phones, tablets, etc.) and should be reimbursed subject to the £500 personal belongings limit, while the MOT and service book were correctly excluded as documents.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Watford Insurance Company Europe Limited, all decisions | 331 | 46% |
Source
Read the original decision on the Financial Ombudsman Service website