Rental Property Decision Reference 2022-0097

• Case Outcome: Rejected
• Reference: 2022-0097
• Date: 21 March 2022
• Year: 2022
• Subject Matter: Rental Property
• Finantial Sector: Insurance
• Conducts Complained Of: Rejection of claim

Decision Ref:

2022-0097

Sector:

Insurance

Product / Service:

Rental Property

Conduct(s) complained of:

Rejection of claim

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

The Complainant, a landlord, held a Business Complete Insurance Policy with the Provider.

This complaint concerns the Provider’s declinature of the Complainant’s business

interruption claim.

The Complainant’s Case

The Complainant notified the Provider on 16 April 2020 of a claim for loss of rental income

when her tenant, which traded as a beauty salon, was unable to pay her the rent due, as a

result of the tenant’s closure arising from the outbreak of Coronavirus and the Government

measures introduced to curb the spread of coronavirus (COVID-19).

Following its assessment, the Provider wrote to the Complainant on 21 April 2020 to advise

that it had declined her claim, as follows:

“We have carefully considered your insurance policy to assess whether it provides

cover in circumstances where your business had to close to assist nationwide

measures introduced by the Government to slow the spread of the COVID 19

pandemic. The business interruption section of the policy is normally triggered

following physical damage to the premises or stock caused by one of the insured

events listed in the policy. There is also an extension against business interruption

resulting from a case or cases of specifically named notifiable diseases (listed in the

policy) at the premises or caused by food or drink supplied from the premises or any

organism likely to cause one of the named listed notifiable diseases being discovered

at the premises.