Upheld: unfair claim settlement and unreasonable delays in claim handling complaint against Accelerant Insurance Europe SA/NV UK Branch

Decision detail

Summary

T, a sole trader, held a commercial property insurance policy with Accelerant covering buildings and contents. Following an escape of water in December 2022, T made a claim for damage to both the building and contents. Accelerant's own inspection confirmed water-damaged contents in five rooms that likely needed replacing. However, Accelerant refused to pay the contents claim, arguing T had not suffered a financial loss and demanding evidence of the sale of undamaged items. The ombudsman upheld the complaint, finding that the policy covers damage to contents as defined, regardless of separate financial loss, and that Accelerant's inspection report itself proved the damage. The ombudsman also found Accelerant caused unreasonable delays, with T having to chase progress multiple times over 20 months before any payment was offered.

The Ombudsman's reasoning

The policy covers 'damage' to insured contents, defined as 'direct physical loss destruction of or damage'. Accelerant's own inspection report confirmed water-damaged contents in five rooms that likely needed replacing, satisfying the policy definition of damage. The ombudsman rejected Accelerant's requirement for evidence of financial loss beyond the damage itself, as the policy covers damage to contents, not financial loss. The ombudsman found no evidence T was compensated for the damaged contents through the building sale or otherwise, so payment would not result in unfair benefit. The ombudsman also found Accelerant caused unreasonable delays in handling the claim, with T having to chase progress multiple times over an 20-month period before any payment was offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website