Not upheld: Home insurance claim disputes complaint against Aviva Insurance Limited

Decision detail

Summary

Mr R and Mrs B complained about Aviva's handling of a home insurance claim following damage caused by a third party who admitted liability. After initial attempts to claim from the third party failed, they claimed under their own Aviva policy, which identified significant underinsurance (27% adequacy). Aviva offered proportional settlement under the policy terms and £250 compensation for service delays. The ombudsman found that Aviva clearly communicated the underinsurance issue and claim options, that Mr R and Mrs B failed to take reasonable care with the sum insured declaration, and that the £250 compensation was appropriate for the delays experienced. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Aviva did not mislead Mr R and Mrs B regarding the claim process or underinsurance implications. Mr R and Mrs B were given adequate information to make informed decisions. The ombudsman determined that as Mr R and Mrs B made a claim against their own policy, any consideration was subject to the policy terms, including the impact of underinsurance. The ombudsman rejected the argument that Aviva should have acted as an intermediary to recover full losses from the third party. Regarding delays, while Aviva accepted service failings, the £250 offered was found to be broadly within the appropriate award range considering the impact on the complainants. The ombudsman applied the Consumer Duty when considering what was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website