Upheld: Home insurance claim disputes complaint against UK Insurance Limited
Financial Ombudsman decision DRN-6447317 of 2026-06-23T00:00:00+00:00. Home insurance claim disputes complaint against UK Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6447317 |
|---|---|
| Decision date | 2026-06-23T00:00:00+00:00 |
| Firm | UK Insurance Limited |
| Product | Home insurance |
| Claim type | Home insurance claim disputes |
| Outcome | Upheld |
| Remedy | UKI directed to: (1) Pay Mr and Mrs B £500 additional compensation (in addition to £1,900 already paid); (2) Provide Mr and Mrs B with two options: Option A - UKI continues to complete chimney repairs (with further site visits to scope work); Option B - Cash settlement (not full and final, with UKI required to reconsider costs if additional work or quotes are submitted, using open market rates, covering all costs for qualified contractors and Local Authority Building Control regularisation); (3) If Option B selected, UKI must promptly and fairly review any additional costs submitted by Mr and Mrs B, including surveyor oversight fees; (4) Any repair must be effective and lasting |
Summary
Mr and Mrs B claimed on their UKI home insurance policy following a 2020 fire. Over five years, UKI instructed multiple agents to carry out repairs but caused significant delays, poor communication, unprofessional conduct, and safety concerns, leading to five upheld complaints and £1,900 compensation. When disputes arose over remaining chimney works and scope, UKI attempted to impose a cash settlement despite having conducted repairs for five years. Mr and Mrs B refused, requesting UKI contract the works directly. The ombudsman upheld the complaint, finding UKI had established a repair contract and could not fairly switch to cash settlement without exceptional circumstances, which were not present. The ombudsman awarded an additional £500 compensation and directed UKI to offer Mr and Mrs B the choice between continuing repairs or accepting a non-final cash settlement with provisions for additional costs.
The Ombudsman's reasoning
The ombudsman found that UKI had established a repair contract by proceeding with repairs for approximately five years and therefore could not fairly switch to cash settlement without exceptional circumstances. The three areas UKI cited as evidence of irretrievable breakdown were rejected: (1) the frequency of complaints was justified given UKI's own acknowledgment of serious service failures across five upheld complaints; (2) the restriction on direct surveyor communication was not flagged as a blocker at the time and the claim proceeded thereafter; (3) the October 2025 scaffolding refusal was clarified by Mr and Mrs B as necessary for roof inspection and building control purposes, and their position showed distinction from obstructive behaviour. The ombudsman concluded the relationship had not irretrievably broken down and the cash settlement was therefore unfair. Additional compensation of £500 was awarded for sustained distress and inconvenience, recognizing the substantial time and involvement required from Mr and Mrs B over the claim period.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UK Insurance Limited, all decisions | 3,739 | 33% |
| Home insurance claim disputes, all decisions | 25,670 | 38% |
| Home insurance, all decisions | 20,959 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website