Not upheld: claim handling delays, poor service, poor communication, cash settlement dispute, scope of works dispute complaint against Aviva Insurance Limited

Decision detail

Summary

Mr D complained about Aviva's handling of a home insurance claim for water damage, specifically regarding delays, poor communication, and poor service occurring between July 2025 and February 2026. The complaint also involved disputes over the scope of works, cash settlement amount, and a claim for disposed contents. Aviva offered total compensation of £1,450 across three complaint responses. The ombudsman found that while Aviva was responsible for significant delays and poor service that impacted Mr D's use of his home and caused distress over many months, the compensation offered was fair and reasonable. The ombudsman upheld Aviva's right to base cash settlement on its supplier's costs and rejected the contents claim due to insufficient evidence of damage.

The Ombudsman's reasoning

The ombudsman found that while Aviva caused significant delays, poor communication, and poor service since July 2025 that impacted Mr D's use of his home and caused distress over a sustained period, the total compensation of £1,450 offered was fair and reasonable. The ombudsman upheld Aviva's contractual right to base cash settlement on what it would have cost its own supplier to complete repairs, as this is a standard and reasonable insurance term. Regarding the disposed contents, the ombudsman found insufficient evidence to show what was damaged and what caused the damage, so could not direct payment. The ombudsman acknowledged that part of the settlement delay was due to Mr D's preference for using his own contractor and higher settlement rates, which Aviva was not obligated to accept.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website