Partially upheld: claim handling - service failures, communication delays, and inadequate investigation progression complaint against UK Insurance Limited

Decision detail

Summary

Mr and Mrs K complained about UKI's handling of a subsidence claim made in September 2020 following damage noticed in May 2020. The claim became protracted over several years, with UKI proposing tree removal as a solution while Mr and Mrs K disputed this and raised concerns about incomplete investigations into alternative causes such as drainage and foundation issues. The ombudsman found that while UKI's reliance on expert evidence was not unreasonable, there were significant service failures including communication breakdowns, unresponded correspondence, and avoidable delays in progressing investigations. The ombudsman upheld the complaint in part, finding that the cumulative effect of these failures caused additional distress beyond what would normally be expected, and increased compensation from £700 to £1,250 total.

The Ombudsman's reasoning

The ombudsman found that while UKI's reliance on expert evidence regarding tree removal was reasonably open to them at the time and did not demonstrate bad faith, there were significant cumulative service failures in communication and delays that caused additional distress beyond what would normally be expected in a subsidence claim. The ombudsman rejected assessing the claim with hindsight benefit, noting that UKI's later agreement to underpin does not automatically mean their earlier position was unreasonable. However, the prolonged uncertainty and repeated delays caused by UKI's service failures resulted in ongoing distress and inconvenience that warranted additional compensation beyond the £700 already paid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website