Trouble with our home insurer

[BagofHolly]

We had a big (28K) insurance claim in 2008 due to an escape of water in our house. We moved out for 5 months (rental covered by insurer) and the house was fixed by the insurer's appointed builders. Fast forward to 2011 and it transpires that the quality of the works were so bad that they ALL have to be redone. All of it, and in fact more, because the reinstatement works actually damaged the property - leaking sewage, mould etc.
We've moved out again (paid for by the insurer again) and building work has started again, to fix, reinstate, redecorate etc, all at the cost of the insurer. The insurance company, whilst not yet admitting that this is all the doing of their own appointed building company in 2008, are treating this second lot of works as continuous with the original claim.
We've submitted one formal complaint already, and as a result were appointed a personal claims advisor.
The stress of having to move twice and have our house almost rebuilt twice, is terrible. There was black mould between the floor joists where our son was sleeping and he has awful respiratory problems. Do we have any sort of a claim against our insurer? What should we do, if anything? We spoke to the Financial Ombudsman who are persuing the insurer on our behalf but have indicated we would be looking at a few hundred pounds tops if there was a financial settlement as they're not in the business of awarding punitive damages.

Any thoughts or advice would be welcome.

[BagofHolly]

Just to clarify, should we see a solicitor regarding a personal injury claim? Do we even have one? Is there really such a thing as "pain and suffering"? What, what should we do? We'd like some sort of compensation for all we've been through and continue to go through!