Building insurance complaints soar to record high

Buildings insurance was the second most complained about product by consumers during Q1 of the Financial Ombudsman Service’s (FOS) 2024 financial year.

According to its data, homeowners and businesses brought 2,001 buildings insurance complaints between April and June 2024.

This is the highest number of complaints registered within a three month period.

It comes following the number of buildings insurance complaints increasing steadily over the past 10 years – in the last financial year, 41% of cases were upheld.

Sean Hamilton, ombudsman director in insurance at the FOS, said: “Buildings insurance complaints have been steadily on the rise for some time, but it is concerning to see this significant change in the number of unhappy consumers coming to our service in just a three month period.

“If people aren’t happy with how they have been treated they should contact our free, independent service and we’ll investigate.” 

Problems

The FOS also gave insight into the common problems raised by consumers.

It said the top three reasons for complaints being brought to the FOS included claim decline (41%), claim delay (23%) and claim value (8%).

“We encourage the sector to take on board this insight and the reasons for which we are seeing cases and to improve communications, transparency and timeliness,” Hamilton said.

The FOS also said that its research showed that when a professional expert is required in a case, communication between the consumer and insurance provider can break down, leading to delays and dissatisfaction.

“The more ‘third party agents’ there are involved in a claim journey, the more likely it is that difficulties will emerge,” it said.

Hamilton added: “We’ve heard from consumers who find themselves locked in a confusing chain of communication with no one party taking responsibility and significant delays in settlement.

“Firms need to ensure they’re meeting their regulatory obligations by clearly communicating with policyholders, engaging throughout the process and settling claims without unnecessary delays.”