Partially upheld: Service failures generally complaint against Avantia Insurance Limited trading as Homeprotect

Decision detail

Summary

Mrs S complained that Avantia Insurance Limited caused her home insurance policy to lapse by failing to clearly communicate that it would not automatically renew on 20 June 2025. After discovering the property was being let out, Avantia sent confusing renewal communications on 4 and 8 July, but sent a clear letter on 14 July stating the policy had lapsed and inviting Mrs S to contact it to renew. Mrs S did not act on the 14 July letter and only discovered the lapse in September when attempting to make a claim. The ombudsman upheld the complaint in part, finding Avantia's communications were confusing and misleading but that Mrs S should have acted on the clear 14 July letter. Compensation of £200 was awarded for trouble and upset, and Avantia was required to investigate a claim relating to an incident in January 2025 when Mrs S was covered.

The Ombudsman's reasoning

The ombudsman found that Avantia's communications were confusing and misleading, particularly the 8 July email which could have given the impression the policy had been renewed when it had not. However, the 14 July letter was absolutely clear that cover had lapsed and invited Mrs S to contact Avantia to renew. Mrs S should have been aware from reading the 8 July letter that action was required and that she had not paid the premium for cover from 20 June 2025. The ombudsman concluded that while Avantia caused unnecessary trouble and upset through unclear communications, Mrs S bore some responsibility for not acting on the clear 14 July letter, which would have allowed her to reinstate cover before the September claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website