Upheld: Home insurance claim disputes complaint against Society of Lloyds
Financial Ombudsman decision DRN-6427798 of 2026-06-17T00:00:00+00:00. Home insurance claim disputes complaint against Society of Lloyds. Outcome: Upheld.
Decision detail
| Reference | DRN-6427798 |
|---|---|
| Decision date | 2026-06-17T00:00:00+00:00 |
| Firm | Society of Lloyds |
| Product | Other regulated product |
| Claim type | Home insurance claim disputes |
| Outcome | Upheld |
| Remedy | 1. Pay £3,000 compensation for distress and inconvenience (can deduct £750 if already paid). 2. Provide details of three independent structural engineers with geotechnical expertise and no prior relationship with W or G within two weeks. 3. Appoint the engineer selected by Ms P within seven days. 4. Engineer to review all evidence, determine cause of subsidence, recommend remedial and superstructure repairs, and explicitly state extent to which cause is identified and remediation addresses it. Brief to cover whole building and impact on neighbouring property 19. 5. Cover all costs of independent engineer and any further investigations. 6. Share engineer's report with Ms P after discussing concerns. 7. Share all other expert reports and supporting information promptly. 8. Reimburse £750 paid for independent expert advice plus 8% per annum simple interest from date paid. 9. Appoint a senior member of staff not previously involved to oversee claim handling moving forward. |
Summary
Ms P complained about Society of Lloyds' handling of her subsidence claim. The insurer and its agents implemented a polymer resin injection without fully understanding the cause of the subsidence movement and conducted an inadequate investigation. The ombudsman found there were avoidable delays of approximately two years attributable to mismanagement and poor decision-making, separate from unavoidable delays caused by technical complexity. Ms P's loss of confidence was justified. The ombudsman upheld the complaint and required Society of Lloyds to appoint an independent structural engineer with geotechnical expertise to conduct a full review, pay £3,000 compensation for distress and inconvenience, reimburse £750 for independent expert advice with interest, and appoint a senior oversight member of staff.
The Ombudsman's reasoning
The ombudsman found that despite the undoubted complexity of the subsidence issue, Society of Lloyds and its agents failed to adequately investigate the cause before implementing solutions. The polymer resin injection was carried out without sufficient understanding of whether it would work. There were avoidable delays attributable to mismanagement and poor decision-making, separate from unavoidable delays caused by technical complexity. Ms P's lack of confidence in the parties involved was understandable and justified. An independent structural engineer review is necessary to restore Ms P's confidence and ensure the correct way forward is taken.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Society of Lloyds, all decisions | 1 | 100% |
| Home insurance claim disputes, all decisions | 25,670 | 38% |
| Other regulated product, all decisions | 47,449 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website