Upheld: claim handling failure, inadequate consideration of vulnerability, delays in claim completion complaint against Lloyds Bank General Insurance Limited
Financial Ombudsman decision DRN-6306599 of 2026-04-21T00:00:00+00:00. claim handling failure, inadequate consideration of vulnerability, delays in claim completion complaint against Lloyds Bank General Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6306599 |
|---|---|
| Decision date | 2026-04-21T00:00:00+00:00 |
| Firm | Lloyds Bank General Insurance Limited |
| Product | home insurance |
| Claim type | claim handling failure, inadequate consideration of vulnerability, delays in claim completion |
| Outcome | Upheld |
| Remedy | Lloyds Bank General Insurance Limited must: (1) Attend the property to clean, deodorise and complete remaining repairs including alarm and bath panel, arranging alternative accommodation at their expense; (2) Pay food allowance at £20 per day from when cooker first stopped working until adequate cooking facilities available, plus 8% simple interest; (3) Reimburse cooker replacement/repair costs upon proof, plus 8% simple interest; (4) Arrange inspection of door damage by qualified expert and repair if related to escape of water; (5) Pay £675 compensation; (6) May deduct £776.99 from amounts due for previously cash settled works. |
Summary
Miss R claimed on her home insurance with Lloyds following water damage from a boiler leak in November 2024. Lloyds accepted the claim but declined some elements and the claim handling was significantly delayed, with works incomplete by the time the complaint reached the FOS. Miss R made multiple complaints about delays, treatment by agents, and coverage decisions. Lloyds acknowledged failings and offered £1,500 compensation, but required Miss R to repay £776.99 in cash settlements before completing works and insisted on alternative accommodation. The ombudsman upheld the complaint, finding Lloyds' offer fair but directing that the repayment be deducted from compensation and other amounts owed, and requiring completion of all outstanding repairs including alternative accommodation arrangements.
The Ombudsman's reasoning
The ombudsman found that while some delays were not Lloyds' responsibility (such as when Miss R was unavailable or unwell), Lloyds were responsible for other failures including unreasonably refusing to attend the property, not adequately considering Miss R's vulnerabilities, being unclear about coverage, and not properly explaining the need for alternative accommodation. The ombudsman considered that completing works rather than cash settling was preferable to guarantee lasting repairs, and that deducting the cash settlement amounts from compensation and other payments was fair. The £1,500 total compensation was found appropriate given the length of the claim, the distress caused, and Lloyds' acknowledged failings.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank General Insurance Limited, all decisions | 1,337 | 25% |
Source
Read the original decision on the Financial Ombudsman Service website