Upheld: Home insurance claim disputes complaint against Society of Lloyd's (SOL)

Decision detail

Summary

Mr C claimed on his let property insurance policy for damage discovered in October 2024 and sought loss of rent compensation. SOL determined the property was underinsured (£62,049 provided versus £136,000 reasonable cost) and offered a proportionate settlement of £2,283.02, refusing loss of rent because the tenant moved out due to damage partly caused by the tenant itself, not solely by insured damage. The ombudsman upheld the complaint on the technical ground that SOL had not paid its offered settlement and £250 compensation, but agreed that SOL's underlying decisions on underinsurance, proportionate settlement, and loss of rent denial were fair and reasonable.

The Ombudsman's reasoning

The ombudsman upheld the complaint on the technical ground that SOL had not paid the settlement and compensation it had already offered, requiring enforcement of those payments. However, the ombudsman agreed with the investigator that SOL acted fairly in: (1) determining the property was underinsured and settling on a proportionate basis; (2) refusing loss of rent cover because the tenant moved out due to damage caused partly by the tenant, not solely due to insured damage; (3) requesting clear cost breakdowns from Mr C, which were not adequately provided; and (4) offering £250 compensation for service delays. The ombudsman found Mr C did not make a fair presentation of risk when providing the sum insured figure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website