Upheld: poor claim handling, delays, lack of communication complaint against Lloyds Bank General Insurance Limited

Decision detail

Summary

Mr and Mrs A claimed on their home insurance policy with Lloyds for water damage in May 2025. While Lloyds initially responded promptly by arranging a contractor visit within three days and providing alternative accommodation, the claim handling subsequently suffered from an avoidable three-week delay between receiving information from the previous insurer and arranging the next visit, combined with poor communication and lack of proactive updates. Mrs A's concerns about contamination were not addressed until 16 July 2025, causing unnecessary worry. Lloyds offered £300 compensation which Mrs A rejected. The Ombudsman upheld the complaint and found the £300 compensation to be fair and reasonable, requiring Lloyds to pay it.

The Ombudsman's reasoning

The Ombudsman found that while Lloyds initially handled the claim appropriately by arranging a contractor visit within three days and arranging alternative accommodation based on the initial report, there was an avoidable delay of three weeks between receiving necessary information from the previous insurer on 25 June 2025 and arranging the next visit on 16 July 2025. The lack of proactive updates and delays, combined with Mrs A's repeated concerns about contamination that were not addressed until 16 July, caused unnecessary worry and distress beyond what would reasonably be expected in a claim of this nature. The £300 compensation offered by Lloyds falls within the appropriate award band of £100-£300 for cases where insurer mistakes cause some distress and inconvenience lasting a few weeks.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website