Not upheld: Home insurance claim disputes complaint against Accelerant Insurance Europe SA/NV UK Branch

Decision detail

Summary

Mr B claimed on his commercial property insurance policy after a fire damaged a property he owned and rented to a car mechanic business in March 2022. The initial loss adjuster appeared to accept the claim, but after Accelerant replaced the loss adjuster, the claim was declined in June 2024. A forensic expert report concluded the fire was likely caused by one of three sources (open stove, hot work, or smoking materials) and found the premises were significantly littered with flammable materials and smoking detritus, indicating poor maintenance. The ombudsman found Accelerant was justified in declining the claim as the policyholder had breached the policy condition requiring reasonable care to prevent loss or damage, though the two-year delay warranted the £1,500 compensation already paid.

The Ombudsman's reasoning

The ombudsman found that the forensic expert report provided clear evidence that the garage was kept in a condition that either caused or significantly exacerbated the fire. The presence of flammable materials, smoking detritus, and poor maintenance breached the policy condition requiring the policyholder to take reasonable care to prevent loss or damage. Although the inspection occurred after the fire, it was vanishingly unlikely that conditions had deteriorated significantly after the fire itself. The ombudsman rejected alternative explanations (air compressor) as the expert had inspected the property and did not identify it as a likely source, and even if it were the ignition source, the fire would have been fuelled by the flammable materials negligently left on the premises.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website