Not upheld: poor claims handling, delays, misleading information, failure to progress claim promptly complaint against Intact Insurance UK Limited

Decision detail

Summary

Mr J and Mrs J complained about Intact Insurance's handling of their subsidence claim, which was reported in 2019 and accepted but subsequently mishandled with delays in alternative accommodation payments, unclear information about progress and coverage, and slow claim progression. Intact acknowledged errors and paid £2,050 compensation in October 2025, but Mr J disputed this was adequate given the substantial distress and inconvenience caused. The ombudsman found the compensation reasonable, acknowledging the errors had caused considerable additional distress beyond what would normally be expected, but determined no further compensation was warranted as the amount was appropriate for the sustained and severe disruption experienced.

The Ombudsman's reasoning

The ombudsman acknowledged that Intact had made substantial errors causing considerable additional distress and unnecessary inconvenience to Mr J beyond what would normally be expected from a subsidence claim. However, the ombudsman found that the £2,050 compensation was reasonable to acknowledge the impact, as it would be expected in circumstances where a business's errors have caused sustained and severe disruption to daily life over a prolonged period. The ombudsman also noted that the council tax refund had been paid following the FOS referral, and that Mr J's claim had been ongoing for a considerable period with multiple upheld complaints, making further errors more impactful.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website