Upheld: unfair settlement offer, claim handling, liability determination complaint against Allianz Global Corporate & Specialty SE
Financial Ombudsman decision DRN-6334133 of 2026-05-07T00:00:00+00:00. unfair settlement offer, claim handling, liability determination complaint against Allianz Global Corporate & Specialty SE. Outcome: Upheld.
Decision detail
| Reference | DRN-6334133 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | Allianz Global Corporate & Specialty SE |
| Product | building warranty insurance |
| Claim type | unfair settlement offer, claim handling, liability determination |
| Outcome | Upheld |
| Remedy | Allianz Global Corporate & Specialty SE must pay: (1) £18,187 for roof work; (2) £119,700.90 for balcony claim plus 8% simple interest per annum from 23 January 2024 until settlement; (3) £1,000 compensation for upset caused by unfair settlement handling. Allianz must also consider liability for any damage caused by the missing vapour layer when the roof is opened and any unforeseen costs for balcony work, taking into account the contingency funds already included in the settlement. |
Summary
Mr and Mrs W complained about Allianz's settlement offer for damage to their home following a 2021 roof defect claim that Allianz had declined. In 2023, they made two new claims for balcony damage and a cracked roof gulley. Allianz offered £137,887.90 in settlement but insisted it was full and final and linked both claims together. The ombudsman found Allianz acted unfairly by refusing to separate the settlements and by delaying the reasonable balcony settlement offer from January 2024 to October 2024. While the ombudsman upheld Allianz's position on limiting liability for the cracked gulley (due to unimplemented 2021 recommendations) and finding no current damage from the missing vapour layer, it required Allianz to pay £119,700.90 for balconies with interest, £18,187 for roof work, and £1,000 compensation, plus reconsider vapour layer liability if damage is found during roof opening.
The Ombudsman's reasoning
The ombudsman found that while Allianz reasonably relied on the 2021 expert recommendations not being followed to restrict liability for the cracked gulley, it acted unfairly by insisting the settlement was full and final and by tying the balcony and roof settlements together. This prevented Mr and Mrs W from accepting the balcony settlement independently. The ombudsman found that the missing vapour layer would not likely have been discovered if the 2021 recommendations had been followed, as the investigations would not have required removal of insulation. Currently, there is insufficient evidence that the missing vapour layer is causing damage. However, Allianz must reconsider this if damage is found when the roof is opened. The ombudsman awarded compensation for the delay in providing a reasonable balcony settlement offer (which should have been made in January 2024, not October 2024) and the resulting inability to use the balconies during 2024.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Allianz Global Corporate & Specialty SE, all decisions | 23 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website