Upheld: Service failures generally complaint against Allianz Insurance Plc

Decision detail

Summary

Ms N claimed for subsidence at her property in August 2022. Allianz identified a Tree Preservation Order-protected tree as the cause and decided to install a root barrier, but caused avoidable delays by not considering alternative measures earlier and failing to proactively seek TPO clarification. Ms N moved from the property and rented it to tenants, claiming she could not sell due to Allianz's delays. The ombudsman upheld the complaint regarding poor claim handling and awarded additional compensation of £375 (total £975), but rejected Ms N's claims for financial losses from the failed sale and rental costs, as the buyers withdrew due to subsidence issues rather than delays, and Ms N's decision to rent was her own choice.

The Ombudsman's reasoning

While subsidence claims are inherently lengthy and some inconvenience is unavoidable, Allianz's handling fell short of reasonable standards. The firm could have considered alternative stabilisation measures earlier, should have proactively sought TPO clarification, and took an unreasonably long time (four months) to obtain the arborist's report. However, the buyers' withdrawal was due to subsidence issues themselves, not the delays, and Ms N's decision to rent rather than sell was her own choice. The recommended compensation of £975 adequately reflects the distress and inconvenience caused by Allianz's avoidable delays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website