Partially upheld: Home insurance claim disputes complaint against Zurich Insurance Company Ltd
Financial Ombudsman decision DRN-6295402 of 2026-07-06T00:00:00+00:00. Home insurance claim disputes complaint against Zurich Insurance Company Ltd. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6295402 |
|---|---|
| Decision date | 2026-07-06T00:00:00+00:00 |
| Firm | Zurich Insurance Company Ltd |
| Product | Home insurance |
| Claim type | Home insurance claim disputes |
| Outcome | Partially upheld |
| Remedy | Zurich must pay a further £196.15 (£96.15 for three days lost rent plus £100 remaining from the £250 compensation offer, with £150 already paid). Zurich must also reimburse Mr P for any rent lost during the period when the property had no electricity, provided Mr P supplies evidence of such losses. |
Summary
Mr P claimed on his let property insurance after a water leak on 16 June 2025 damaged his rental flat occupied by tenants including a baby. After agreeing a 40% rent reduction with tenants without hearing from Zurich, Mr P sought reimbursement of lost rent. Zurich refused general lost rent payment, offering only three days when ceiling removal was necessary, and declined cash settlement for items Mr P was not reinstating. The ombudsman found the property remained habitable after electrics were made safe and upheld Zurich's limited lost rent offer of £96.15 for three days, plus £250 compensation for service failures. However, Zurich must reimburse rent lost during the period when electricity was unavailable, if Mr P provides evidence.
The Ombudsman's reasoning
The ombudsman found that after electrics were made safe, the property remained habitable despite damp staining, moist walls, missing ceiling rose, and lifted carpets. The property was not so damaged as to be uninhabitable under the policy terms. Zurich's decision to pay only three days lost rent (when ceiling removal was necessary) was fair. The property's condition did not justify broader lost rent claims. Zurich acted within policy terms by deducting the excess from contractor payments. The £250 compensation for poor service and communication delays was reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zurich Insurance Company Ltd, all decisions | 195 | 23% |
| Home insurance claim disputes, all decisions | 24,376 | 38% |
| Home insurance, all decisions | 21,507 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website