Upheld: Home insurance claim disputes complaint against AmTrust Specialty Limited
Financial Ombudsman decision DRN-6294280 of 2026-06-16T00:00:00+00:00. Home insurance claim disputes complaint against AmTrust Specialty Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6294280 |
|---|---|
| Decision date | 2026-06-16T00:00:00+00:00 |
| Firm | AmTrust Specialty Limited |
| Product | Home insurance |
| Claim type | Home insurance claim disputes |
| Outcome | Upheld |
| Remedy | AmTrust Specialty Limited must: (1) Meet Mr R's claim in full under the remaining terms and conditions of the policy; (2) If an interim cash settlement was paid, pay interest on the difference from the date of interim payment to settlement date; (3) Provide updated policy documentation showing the correct premium increase reflecting the £501,000 rebuilding sum insured; (4) Refund the premium difference charged based on the incorrect rebuild sum insured calculation; (5) Pay interest on the refund and cash settlement at 8% simple interest per annum; (6) Pay £250 compensation for distress and inconvenience caused; (7) Pay compensation within 28 days with additional 8% interest if paid later. |
Summary
Mr R complained that AmTrust unfairly reduced his water damage claim settlement because his home was underinsured. Mr R had estimated his rebuild costs at £280,000 using AmTrust's online calculator tool when purchasing his policy in August 2023, which was later increased to £285,000 on renewal. When he claimed in August 2025, the Loss Adjuster determined the correct rebuild cost should be £501,000, and AmTrust applied a proportionate reduction to the settlement. The ombudsman upheld the complaint, finding that Mr R's estimate fell within the range provided by the calculator and that it is unreasonable to expect consumers to hire professional surveyors for such estimates. AmTrust was ordered to pay the claim in full, refund incorrect premium charges with interest, provide updated documentation, and pay £250 compensation.
The Ombudsman's reasoning
The ombudsman found that while Mr R's estimate of £280,000 was lower than the actual rebuild cost of £501,000, it fell within the range provided by the online calculator tool that AmTrust itself directed customers to use. The ombudsman determined that it is not reasonable to expect consumers to obtain professional surveyor opinions for such estimates, and that AmTrust failed to demonstrate Mr R acted unreasonably. Since Mr R provided an estimate within the calculator's range, applying a proportionate reduction to the claim settlement was unfair. The ombudsman also found that AmTrust incorrectly calculated the premium increase and must recalculate and refund the difference.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AmTrust Specialty Limited, all decisions | 149 | 30% |
| Home insurance claim disputes, all decisions | 25,670 | 38% |
| Home insurance, all decisions | 20,959 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website