Upheld: Motor insurance, claim handling complaint against National House-Building Council (NHBC)

Decision detail

Summary

Mr S complained that NHBC failed to handle his Buildmark insurance claims fairly regarding defective windows and doors installed in 2017 that caused excessive condensation and mould. After years of complaints, investigations in 2024 confirmed thermal bridging, heat loss, and structural defects in the render works. NHBC agreed to rectification work but caused substantial delays through repeated changes to scope and an unreliable contractor, with work still incomplete by end of 2025. The Ombudsman upheld the complaint, finding NHBC breached claims handling requirements, and ordered £1,200 compensation for distress and inconvenience, but rejected claims for heat loss reimbursement due to difficulty in quantification.

The Ombudsman's reasoning

NHBC failed to handle the claim promptly and fairly in breach of ICOBS 8.1 requirements. The repeated delays in finalising the scope of works, selecting a contractor, and commencing rectification work meant Mr S lived with the defective windows, condensation and mould for substantially longer than necessary. The expert report confirmed heat loss was measurable but the increased heating costs were not quantifiable with sufficient certainty to warrant reimbursement. Compensation of £1,200 is appropriate for the substantial disruption to daily life over the relevant period (27 November 2023 to 5 September 2025).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website