Upheld: Home insurance claim disputes complaint against Hiscox Insurance Company Limited

Decision detail

Summary

V, a limited company represented by its director Ms D, complained about Hiscox's handling of a business protection insurance claim following a water escape in November 2022. Hiscox overlooked the contents element of the claim despite it being referenced in August 2023, failed to obtain necessary information before making a January 2024 settlement offer which was subsequently withdrawn, and handled communications unclearly. The ombudsman upheld the complaint, finding multiple failings in claim handling and determining that total compensation of £750 was appropriate to reflect the inconvenience caused to V, though declining to consider the personal impact on Ms D as the complaint was made in her capacity as company representative.

The Ombudsman's reasoning

The ombudsman found clear failings in Hiscox's claim handling: it overlooked the contents claim despite explicit reference in August 2023, failed to obtain necessary information before the January 2024 offer, lacked clarity in explaining information requests, and caused delays in progressing the claim. While the claim was complex and some delay was attributable to V's pursuit of third-party compensation, Hiscox should have obtained information earlier to avoid withdrawing the January offer. The ombudsman considered the impact on V as a limited company (inconvenience rather than distress) over a prolonged period and determined that £750 total compensation adequately reflected the failings, though noting this decision did not address the overall settlement outcome which was considered separately.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website