Not upheld: poor claim handling, service failure, inadequate compensation complaint against Intact Insurance UK Limited

Decision detail

Summary

Mr and Mrs M complained to Intact Insurance about poor handling of their 2019 subsidence claim, which involved extensive delays, poor communication from contractors, unresolved snagging issues, and a chaotic move back home in October 2024 when alternative accommodation ended abruptly. Intact upheld the complaint in January 2025 and paid £1,250 compensation, which Mr and Mrs M believed was insufficient. The ombudsman determined that the £1,250 compensation was fair and reasonable for the issues within scope of the January 2025 complaint, though acknowledged the family's significant distress. Issues arising after January 2025, including returning cracks and ongoing snagging problems, were outside the scope of this decision and would require separate complaints.

The Ombudsman's reasoning

The ombudsman acknowledged the significant distress and inconvenience caused to Mr and Mrs M over a sustained period, particularly the acute disruption of the chaotic move home. However, the ombudsman determined that £1,250 fell within the appropriate compensation range (£750-£1,500) for substantial distress and serious disruption over many months. The ombudsman could not factor in impact on Miss M as she was not an eligible complainant, and could not award compensation for issues arising after January 2025 (returning cracks, ongoing snagging delays, and personal belongings damage) as these fell outside the scope of the complaint being decided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website