Upheld: Home insurance claim disputes complaint against INTACT INSURANCE UK LIMITED

Decision detail

Summary

Limited company C complained that Intact unfairly handled and settled a water damage claim following a toilet leak at an insured property in July 2024. After the initial loss adjuster visit, Mr B reported additional damage including collapsed ceilings and saturation via emails on 11 and 15 July 2024, but Intact and its loss adjuster failed to respond. Mr B was forced to arrange repairs himself, incurring costs exceeding £20,000, which Intact refused to cover. The ombudsman found that while some claimed costs (director's hourly rate and certain labour) were not justified, Intact breached its duty to handle the claim promptly and fairly by ignoring multiple communication attempts about additional damage, thereby waiving its right to pre-approve estimates. The ombudsman upheld the complaint and directed Intact to reconsider the claim, pay verified claim-related costs with interest, and increase compensation to £500.

The Ombudsman's reasoning

The ombudsman found that while some additional costs claimed (director's hourly rate and certain labour costs) were not justified, Intact breached its duty under ICOBS to handle the claim promptly and fairly by failing to respond to reports of additional damage discovered after the initial loss adjuster visit. This non-responsiveness forced Mr B to undertake necessary repairs to prevent further damage to the structure. The ombudsman concluded that Intact waived its right to insist on pre-approving estimates by ignoring multiple communication attempts about the additional damage, and therefore should reconsider the claim to cover verified claim-related remedial costs caused by the insured event.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website