Not upheld: claim handling delays and poor customer service complaint against Lloyds Bank General Insurance Limited

Decision detail

Summary

Mr B complained about Lloyds' handling of an escape of water claim under his residential buildings insurance policy from June 2025 to December 2025. Lloyds had concerns the property was being used as an HMO and that there was no clear source for the alleged water damage, leading to a full investigation. Although Lloyds' investigation concerns were reasonable, it caused avoidable delays and poor customer service, including repeatedly requesting the same information. Lloyds offered £675 compensation, which the ombudsman found fair and proportionate. The complaint was not upheld, though the ombudsman acknowledged the service failures.

The Ombudsman's reasoning

The ombudsman found that Lloyds' concerns about the property being used as an HMO and the unclear source of the water damage were reasonable, justifying a full investigation. However, Lloyds caused avoidable delays and poor customer service by repeatedly requesting the same information from Mr B, causing unnecessary distress and inconvenience. The ombudsman determined that compensation was appropriate and that the £675 offered by Lloyds was fair, reasonable and proportionate in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website