Not upheld: Home insurance claim disputes complaint against Accredited Insurance (Europe) Ltd

Decision detail

Summary

Mr M and Ms P claimed on their home insurance policy after discovering a water leak under their subfloor. Accredited declined the claim, stating there was no visible damage caused by escape of water and the leak resulted from gradual deterioration of the pipe. The ombudsman upheld Accredited's decision, finding that the policy only covers loss or damage caused by escape of water, which did not exist in this case. The leak was caused by age-related decay of the pipe (an excluded peril), and the trace and access benefit only applies where there is valid damage from escape of water. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the policy terms strictly, finding that cover requires 'loss or damage caused by escape of water'. Since the leak occurred under the subfloor with no visible damage to the property itself, there was no valid claim. The leak resulted from gradual deterioration of the pipe (an excluded peril), not a sudden escape of water. The trace and access benefit is conditional on there being valid damage caused by escape of water, which did not exist here. The repairs were undertaken before Accredited could attend, so it could not reasonably be expected to cover those costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website