Upheld: poor claim handling, inadequate alternative accommodation arrangements, defective repair work, poor communication, delayed access to belongings, inadequate contents claim settlement complaint against Zurich Insurance Company Ltd
Financial Ombudsman decision DRN-6300094 of 2026-04-17T00:00:00+00:00. poor claim handling, inadequate alternative accommodation arrangements, defective repair work, poor communication, delayed access to belongings, inadequate contents claim settlement complaint against Zurich Insurance Company Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6300094 |
|---|---|
| Decision date | 2026-04-17T00:00:00+00:00 |
| Firm | Zurich Insurance Company Ltd |
| Product | home buildings insurance |
| Claim type | poor claim handling, inadequate alternative accommodation arrangements, defective repair work, poor communication, delayed access to belongings, inadequate contents claim settlement |
| Outcome | Upheld |
| Remedy | Zurich Insurance Company Ltd must: (1) refund the reasonable costs of Miss B's electrician's fees on provision of relevant receipts, and add 8% simple interest from the date these were paid until refund is made; and (2) pay Miss B a total of £750 for distress, frustration, and inconvenience caused. |
Summary
Miss B claimed on her home buildings insurance for extensive water damage and had to move into alternative accommodation. She experienced a bed bug infestation at the first hotel and Zurich did not promptly assist her in moving to different accommodation. After moving back home in November 2024, multiple repair defects remained unresolved, and Miss B had to pay for electrician visits to fix substandard electrical work. She also pursued a contents claim for missing items but faced poor communication and delays. Zurich paid £550 compensation, but the ombudsman upheld Miss B's complaint and increased the compensation to £750, plus ordered refund of electrician costs with interest, finding that Zurich failed to handle the claim effectively and did not show appropriate empathy given Miss B's vulnerable circumstances.
The Ombudsman's reasoning
The ombudsman found that while some inconvenience is inevitable with a claim of this nature, Zurich failed to deal with the claim effectively and caused unnecessary delays and poor communication. The firm should have shown empathy and done more to assist Miss B when she was in a vulnerable situation (redundant, in a hotel with bed bug infestation). The poor quality of repairs, evidenced by photos and Miss B's detailed account, demonstrated a lack of care by Zurich's contractors. The firm's records did not fully reflect the contact Miss B made regarding missing contents and repair issues, indicating poor claim handling. The ombudsman was satisfied that £750 compensation fairly reflected the distress and inconvenience caused, along with refund of electrician costs incurred due to substandard repairs.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zurich Insurance Company Ltd, all decisions | 184 | 23% |
Source
Read the original decision on the Financial Ombudsman Service website