Not upheld: claim rejection - application of gradual damage exclusion complaint against Accredited Insurance (Europe) Ltd (AIEL)

Decision detail

Summary

Ms K claimed for water damage caused by a leaking wastepipe from a kitchen appliance under her living room floor, which she discovered in October 2025. AIEL rejected the claim citing a policy exclusion for damage caused gradually over a prolonged period. Ms K disputed this, arguing the damage was a sudden event and she reported it as soon as she became aware of it in October 2025, attributing previous odours to unrelated pest infestation issues. The ombudsman examined photos of the damage and found significant water staining in the hallway that would have been visible daily, indicating the damage was gradual rather than sudden. The ombudsman concluded AIEL reasonably applied the policy exclusion based on the physical evidence and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while the policy exclusion for gradual damage 'whether aware or not' may not always be fair, the evidence in this case supported that the water damage was gradual and prolonged. The significant water staining in the hallway, which would be visible daily, indicated the damage occurred over time rather than suddenly. Although the drain specialist's account of what was discussed was disputed, the ombudsman found the decision rested on the physical evidence of gradual damage rather than Ms K's account of odours. The ombudsman concluded AIEL reasonably applied the policy exclusion based on the evidence available.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website