Upheld: claim handling, policy interpretation, unfair refusal to pay claim elements complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr D and Ms P claimed under their Property Investors Protection Plan following water damage to their leasehold flat. They complained about delays in repairs caused by loss adjuster issues, VAT payment problems, refusal to replace matching undamaged wardrobes, and non-reimbursement of storage insurance costs. AXA awarded £500 compensation but rejected the wardrobe replacement claim and did not address the storage insurance issue. The ombudsman upheld the complaint, finding the policy wording required replacement of the undamaged wardrobes as part of a common design, and that storage insurance costs should be reimbursed since storage itself was accepted as a valid claim element.

The Ombudsman's reasoning

The ombudsman found that the policy wording clearly covers replacement of non-damaged parts forming part of a common design where damage is to a clearly identifiable area. The wardrobes in bedroom one are non-damaged parts of a common design with those in bedroom two, and the damage was restricted to bedroom two. Since AXA reimbursed storage costs, it was unreasonable not to reimburse the insurance component of those costs, which was mandatory with the storage option chosen. The VAT handling was reasonable as AXA was clear from the start it would reimburse once invoices were received, and there was no indication the contractor required upfront payment. The £500 compensation was appropriate for the level of distress caused by the delays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website