Upheld: claims handling delay and unreasonable settlement position complaint against AmTrust Specialty Limited

Decision detail

Summary

Mr D claimed on his commercial property insurance following water damage from a neighbouring property leak discovered during kitchen renovations. AmTrust offered to cover damp proof works in full but only 50% of kitchen replacement costs, arguing the kitchen was part of planned refurbishment. After delays and a four-month period when Mr D did not respond (due to serious illness), AmTrust issued a final response in June 2025 offering seven months lost rental income and £300 compensation. The ombudsman upheld the complaint in part, finding AmTrust's settlement offer reasonable but directing it to pay interest on amounts that should have been paid earlier and to reimburse seven months of council tax costs. The ombudsman rejected Mr D's request for full kitchen reimbursement as the damp report did not support that the entire kitchen was damaged by the leak.

The Ombudsman's reasoning

The ombudsman found AmTrust's 50% settlement offer for kitchen repairs was reasonable because Mr D had disposed of the kitchen before making the claim without photographic evidence of water damage to units, and the damp report did not support that the entire kitchen required replacement due to the leak. However, AmTrust acted unreasonably by not paying agreed amounts promptly and by not allowing Mr D to accept settlement while maintaining his complaint. The four-month delay in Mr D providing information was attributable to serious illness, but AmTrust was not responsible for compensating lost rental income during that period since it could not settle without Mr D's input. The ombudsman awarded interest on amounts that should have been paid earlier and directed reimbursement of council tax costs flowing from the same delay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website