Rental Property Decision Reference 2022-0097

Case OutcomeRejected
Subject MatterRental Property
Reference2022-0097
Date21 March 2022
Finantial SectorInsurance
Conducts Complained OfRejection 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.

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