Not upheld: warranty claim declined - causation dispute complaint against National House-Building Council (NHBC)

Decision detail

Summary

Mrs S and Mr S claimed on their NHBC warranty for damage caused by a dishwasher leak to their apartment and the unit below. NHBC declined citing warranty expiry (June 2019) and exclusion of plumbing leaks. The complainants argued the leak only caused damage due to build defects (poor compartmentalisation) for which NHBC had accepted liability. The ombudsman found the claim not upheld, as there was no expert evidence linking the leak's extent to build defects, the warranty clearly excluded plumbing issues, and the damage should have been covered by the block home insurance policy.

The Ombudsman's reasoning

The ombudsman found that NHBC correctly applied the warranty terms, which excluded plumbing leaks and had expired six years prior. While build defects were accepted by NHBC, there was no expert evidence demonstrating that the dishwasher leak's extent or path to the lower apartment was caused by those defects rather than the plumbing fault itself. The damage should have been covered by the block home insurance policy, and it was not unreasonable for NHBC to decline responsibility for a claim outside the warranty scope.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website