Upheld: Complaints handling failures complaint against UK Insurance Limited

Decision detail

Summary

Mr and Mrs H complained that UKI's contractor caused significant flooding to their home by incorrectly installing a ballcock valve on the wrong tank in January 2025. The contractor then failed to properly resolve the emergency, and UKI took two days to send another contractor and five months to fully acknowledge fault. The flooding caused extensive damage requiring remedial work and three months of alternative accommodation, severely impacting the elderly couple's health and wellbeing. UKI initially offered £2,000 compensation, which the ombudsman found insufficient given the severity of the service failure, the vulnerability of the customers, and the prolonged distress and disruption caused. The ombudsman upheld the complaint and increased the compensation to £3,000.

The Ombudsman's reasoning

The ombudsman found that while UKI's contractor's failure to correctly install the ballcock valve was the direct cause of the flooding, the key issue was whether the compensation offered was fair and reasonable. The ombudsman determined that UKI failed to acknowledge responsibility sufficiently quickly, failed to resolve the emergency promptly despite a second clear emergency situation, and provided fragmented communication when Mr and Mrs H were seeking help at a distressing time. The ombudsman noted that Mr and Mrs H's vulnerability due to age and ill-health was a known factor, and that the necessity for remedial works and alternative accommodation was a direct result of the service failure. The ombudsman concluded that £2,000 only partially recognised the severe distress and inconvenience, and that £3,000 was appropriate compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website