Partially upheld: claims handling, settlement of costs, alternative accommodation provision complaint against Covea Insurance plc

Decision detail

Summary

Mr and Mrs F complained about Covea's response to their buildings insurance claim following a 2020 flood, specifically regarding settlement offered for costs incurred due to lack of alternative accommodation. The dispute had been ongoing for six years with multiple previous FOS decisions. The ombudsman found that most claimed costs for work at the original property (electrical testing, decoration, carpentry, etc.) were normal maintenance costs that would have been incurred regardless of accommodation arrangements. However, the ombudsman upheld the claim for septic tank servicing costs as necessary maintenance during the insured works. Covea was directed to reimburse septic tank costs subject to proof and pay £100 compensation for frustration and delays.

The Ombudsman's reasoning

The ombudsman found that most claimed costs were normal maintenance or upkeep costs that any responsible property owner would incur regardless of whether they were living in the property or in alternative accommodation. The ombudsman was not persuaded that the costs were incurred 'but for' the lack of alternative accommodation. However, septic tank servicing costs were found to be reasonable as they were necessary to keep the system in working order during the insured works. Covea's overall actions, including the interest overpayment and generous utility bill contribution, meant no interest was awarded on septic tank costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website