Upheld: Travel / life insurance claim disputes complaint against Liverpool Victoria Insurance Company Limited
Financial Ombudsman decision DRN-6437269 of 2026-06-18T00:00:00+00:00. Travel / life insurance claim disputes complaint against Liverpool Victoria Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6437269 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | Liverpool Victoria Insurance Company Limited |
| Product | Home insurance |
| Claim type | Travel / life insurance claim disputes |
| Outcome | Upheld |
| Remedy | LV is directed to: (1) pay for restorative works as listed in expert C's report from June 2025 visit; (2) reimburse Mrs J's costs for commissioning a damp specialist report with 8% simple interest from date of payment; (3) pay outstanding disturbance allowance until property was deep cleaned in July 2025 with 8% simple interest from date payment was due; (4) update the Claims and Underwriting Exchange database to remove the chimney claim record; (5) pay £1,000 for distress and inconvenience (or outstanding balance if partial payment already made). |
Summary
Mrs J claimed under her home insurance policy for an escape of water in August 2023, which LV accepted. During reinstatement work in January 2024, LV's contractors caused a second leak. Subsequently, Mrs J discovered high moisture levels in her property and raised concerns that walls had not been properly dried before reinstatement work. LV instructed multiple experts and ultimately maintained that the property suffered from pre-existing inherent damp unrelated to the claim, limiting the scope of cover. The ombudsman reviewed extensive expert evidence from both parties and found that the high moisture levels were more likely caused by inadequate drying and builders' debris left in the floor void by LV's contractors, not pre-existing damp. The ombudsman upheld the complaint, directing LV to pay for restorative works per expert C's comprehensive report, reimburse specialist report costs, pay disturbance allowance with interest, correct its claims database records, and pay £1,000 compensation for poor claim handling.
The Ombudsman's reasoning
The ombudsman found that LV's position attributing the high moisture readings to pre-existing inherent damp was not supported by the expert evidence. Multiple experts (R, S, and P) provided evidence pointing to inadequate drying before reinstatement work and builders' debris in the floor void as the likely causes. Expert C's comprehensive June 2025 report provided detailed findings supporting this conclusion. The ombudsman was not persuaded that LV's own experts had categorically linked the moisture to inherent damp. The evidence collectively showed that the second leak caused by LV's contractors and subsequent poor repairs were more likely responsible for the high moisture levels. LV failed to act promptly on information it had and did not adequately understand the compelling evidence from its own experts.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Liverpool Victoria Insurance Company Limited, all decisions | 1,952 | 27% |
| Travel / life insurance claim disputes, all decisions | 20,052 | 31% |
| Home insurance, all decisions | 20,959 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website