Upheld: claims handling - delays and poor communication regarding claim progression and alternative accommodation complaint against Zurich Insurance Company Ltd

Decision detail

Summary

Ms T complained about Zurich's handling of two home insurance claims: one for escape of water and one for fire damage. Zurich accepted both claims and arranged repairs, placing Ms T in alternative accommodation after the fire. Ms T was unhappy with the pace of claim progression and the alternative accommodation offered, which was a three-bedroom rental property rather than something more similar to her six-bedroom home where vulnerable family members lived. The ombudsman found that while Zurich progressed the claims reasonably and made reasonable decisions about accommodation given area restrictions, they could have communicated better about claim progress and its impact on Ms T's living situation. The complaint was upheld and Zurich was directed to pay £150 compensation for these communication failures and minor delays.

The Ombudsman's reasoning

The ombudsman distinguished between distress caused by the claims themselves versus unnecessary distress caused by Zurich's handling. While the claims caused considerable upheaval, Zurich progressed the claims without unnecessary material delays despite the complication of two separate claims. Regarding alternative accommodation, Zurich's initial decision not to provide it for the water damage alone was reasonable, and their efforts to find suitable accommodation were reasonable given area restrictions. However, Zurich could have communicated better about claim progress and its impact on Ms T's living situation, and there were some short unexplained delays at the beginning. The ombudsman found £150 compensation appropriate for these communication failures and minor delays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website