Upheld: claim handling delays and policy renewal complaint against UK Insurance Limited

Decision detail

Summary

Mrs B complained to UKI about delays in handling her buildings insurance claim following escapes of water in December 2022 and January 2023, and about her policy not being renewed in November 2023. The claim remained unresolved for over two years, with Mrs B remaining in alternative accommodation throughout. While UKI was not responsible for delays caused by the contents insurer's removal process, the ombudsman found UKI caused several months of additional delays in addressing property damage issues. The ombudsman upheld the complaint regarding claim delays and awarded £500 compensation for distress and inconvenience, but did not uphold the complaint regarding policy renewal, finding UKI's decision to decline renewal was reasonable and proper notification was provided.

The Ombudsman's reasoning

The ombudsman found that while UKI was not responsible for delays caused by the contents insurer's removal process, there were several months of delays in dealing with rodent infestation, ceiling damage, and mould issues once contents were cleared. These delays caused Mrs B considerable distress and inconvenience by extending her time in alternative accommodation and requiring extra effort to manage the claim. The ombudsman considered the policy limits on alternative accommodation to be contractual terms agreed at inception and therefore enforceable. Regarding renewal, the ombudsman found UKI's commercial discretion to decline renewal based on property condition was reasonable, and that UKI fulfilled its obligation by sending notification in October 2023.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website