Upheld: claim handling delay and avoidable delays in progressing subsidence claim complaint against AXA Insurance UK Plc
Financial Ombudsman decision DRN-6284387 of 2026-06-08T00:00:00+00:00. claim handling delay and avoidable delays in progressing subsidence claim complaint against AXA Insurance UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6284387 |
|---|---|
| Decision date | 2026-06-08T00:00:00+00:00 |
| Firm | AXA Insurance UK Plc |
| Product | Home insurance |
| Claim type | claim handling delay and avoidable delays in progressing subsidence claim |
| Outcome | Upheld |
| Remedy | 1. Carry out further monitoring to include summer 2026 period with assessment by appropriate professional (structural engineer or similar with subsidence experience); 2. Pay necessary costs of council tax, water, electricity, gas, and building insurance premiums from 18 July 2025 to 3 November 2025 inclusive; 3. Pay cost of H's second report and August 2025 monitoring plus 8% simple interest per annum from date costs incurred to date of payment |
Summary
Mr A, acting as representative of Mrs A's estate, complained about how AXA handled a subsidence claim on a property. AXA accepted the subsidence damage was covered by the policy and took steps to identify the cause and monitor movement. However, the ombudsman found AXA caused approximately 3.5 months of avoidable delay by not progressing the claim sooner after early 2025 monitoring suggested stability and by not acting quickly when further movement was discovered in August 2025. The ombudsman upheld the complaint and required AXA to: conduct extended monitoring through summer 2026 with professional assessment, pay necessary utility and council tax costs for the 3.5-month delay period, and reimburse the cost of the professional's second report and August 2025 monitoring with interest.
The Ombudsman's reasoning
The ombudsman found that while AXA's initial approach to gather monitoring data was reasonable, it should have progressed the claim sooner once early monitoring suggested stability, and should have acted more quickly when made aware of further movement in August 2025. This caused approximately 3.5 months of avoidable delay. The ombudsman determined it was fair and reasonable for AXA to compensate the estate for necessary utility and council tax costs during this period despite these not being covered by the policy, as compensation for losses directly caused by AXA's unfair handling. The ombudsman also required extended monitoring to include the summer 2026 period to capture seasonal movement patterns, with professional assessment to determine next steps.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AXA Insurance UK Plc, all decisions | 3,714 | 34% |
| Home insurance, all decisions | 20,668 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website