Please help - Financial Ombudsman being obtuse & unhelpful

[AWorriedMum]

Hi everyone,

A contractor working in my garden last December damaged one of the ground loops for my ground source heat pump - my space heating and hot water went off immediately and have not worked since. The contractor alleges they repaired the ground loop but they didn’t show me any repair and they infilled the trench containing the damaged pipe with soil, no one can see if they have or haven’t repaired it.

I made a claim for accidental damage under my buildings insurance but my insurer rejected the claim, saying the pipe was repaired and any difficulties I’m currently having with my GSHP are ‘unrelated’.

So I complained to the Financial Ombudsman, giving all the details. The investigator seems very unwilling to help me, and gives one excuse after another as to why she thinks my insurer has ‘done nothing wrong’.

First she cited a ‘lack of information’ (I’d provided full information); then she said she couldn’t do anything because my independent engineer report did not state the actual reason why my GSHP is still not working (so I pointed out that I have no contractual obligation to explain why it’s not working). Yesterday she came back to me saying she still concludes as before because my contractor had recommended I get my radiators bled and I have not done this. This had been mentioned before and I had explained that my whole heat pump system is completely dead - bleeding the radiators is not going to make any difference, it’s just the contractor making me jump through hoops.

I could get a ground worker to dig up my garden to check if that ground loop was repaired, but it’d take weeks/months and cost £££, getting a plumber to bleed my radiators would also be a hassle and cost money - and I’m afraid if I do these things the investigator will simply make up another excuse.

Any advice would be gratefully received. This was a rock solid insurance claim, the facts of the case are so obvious - why won’t the Financial Ombudsman investigator find in my favour and oblige my insurer to accept my claim for accidental damage?? And what can I do??

I think the issue is that although there has been accidental damage, a repair (although it sounds bodged) has been carried out, so the issue may be that the bodged repair won’t be covered by your insurance. It may well be that you have to go after the person who carried out the repair.

I can't help you but having used an Ombudsman in recent past, all i can say is that they work hand in glove with the industry they "say" they oversee.

However, in your case, it does make sense to bleed the entire GSHP system, to remove air locks.

I am afraid that's my experience too and many others, that the Ombudsman works in favour of industry and is too scared to take them on.

As suggested above get the system bled or get a plumber to write a statement as to why it won't make a difference.

Then say that you have reasonably investigated this and there is accidental damage.

If you don't agree with the decision of the investigator escalate to the ombudsman. Look up Disp 3.6 of the FCA handbook. The Ombudsman is obligated to take into consideration the FCA code of conduct and the law. Not just 'their opinion'.

Also don't accept their decision if you.dont agree with it as you lose your option to go to small claims court for example. Also check if you have legal cover with your home insurance (yes the irony).

People forget that the Ombudsman funding comes from Industry fees.

Just to clarify I am not legally qualified and this is my experience.

I'm amazed the insurer has even considered this a potential claim under accidental damage cover given a lot of policies exclude damage by workers or during building work.

Why are you not pursuing this with the contractor? They should be insured and it sounds like it's their act, or failed repair, which has caused the problem?!

Surely you need to claim on the gardener’s insurance?

Alternatively get the system fixed and recover the costs from the gardener via small claims.

I think the problem is you don’t like what they are telling you

what you are trying to claim for is a failed repair
You gave the information that it had been repaired then it’s not working after repair

you need to Peruse the Gardner not the insurance company

It's not accidental damage though. You say your contractor damaged then fixed your ground loop. That's a claim against him.
It was repaired - so he says - doesn't work - still a claim against him.
In anything like this you have to prove your case - which will mean evidence. Not just what you think.

This isn't about the ombudsman it's about the contractor. (And a contract, and his insurance)

You "point out" that you have no contractual obligation to explain why it's not working. But that's stupid - of course you have to explain why it's not working. You can't just claim on insurance and expect them to pay up because your heating isn't working. You have to show that it's because of "whatever you're claiming for" reason.

You pay an insurance fee to cover risk. Ideally you hope you won't need it. Insurance will cover accidental damage but usually not anything connected with building works. (You can buy that sort of insurance but it tends to be expensive. so most people don't - they want cheap insurance deals as they forget how insurance works)>
And you can't just say "oooh can you pay for this please" you have to prove the loss and that cause.

I'd like a new boiler, new oven, new shower and new car. I can't just get my insurer to pay.

So my advice is start legal action against the contractor if you think you have enough evidence for a court case. You may be able to do this quiet cheaply depending on value of claim etc.

And everyone thinks the ombudsman and the court and the family court and the employment tribunals etc etc are wrong if they don't get what they want. No-one goes to court or makes an insurance claim if they think they are wrong do they???

Good luck - in getting it fixed OP

The point where your post goes wrong is when you state you have no contractual obligation to explain why the heat pump is not working. For a successful claim (assuming this is covered by your insurance), you need to show that the current problem is due to the damage/repair by the contractor and not due to normal wear and tear, or a failure to bleed your radiators or some other cause. The same would be true if you attempt to claim from the contractor, which is what your home insurance would probably do if they paid your claim. The fact the heat pump hasn't worked since the contractor damaged one of the ground loops suggests that is the problem, but it is not proof.

At the moment you have no proof. They have told you what they need but you are refusing to provide that, classing it as making you jump through hoops. Unless you jump through those hoops, you won't get anywhere. Remember that, if you are right, you will be able to recover any costs you incur in proving the contractor was at fault.

OP I have found Ombudsmen are useless. I have a btl house I let out. I have let this house out for 14 years with no issues at all. My last tenant left apparently having run up large gas and electricity bills. EDF put in metres for gas and electricity and I think this is why tenants left. They did not pay the last 3 months rent and left my house in a terrible state. I contacted EDF to get gas and electricity in my name. They refused to let me have gas or electricity even to put the metre in my name. They kept insisting I paid previous tenants debt. I sorted out the house which took 10 weeks to do. Then I contacted them again requesting gas and electricity be put in my name as no supply to my house so I could not let it out again. Basically I spent all of 2002 trying to get a gas and electricity supply but EDF refused to let me have one and refused to let me go to a different supplier. All the while EDF kept estimating how much gas and electricity I was using. Obviously it was none as there was no supply. Finally after having to pay the mortgage and council tax for a year I put my house up for sale. I made formal complaints to EDF and asked for compensation for loss of rental income due to their failure to supply gas and electricity. They refused and said I could go to Ombudsman. Ombudsman said they had billed me estimated amount for gas and electricity so made EDF accept actual reading showing no gas and electricity had been used. So on that bit my claim was upheld. Poor customer service they ordered EDF to pay me £125. So claim upheld. But for refusing to supply gas and electricity for 12 months and prevention of being able to let out my house said I should go to small claims court. I am raging about it.

This isn't the ombudsman or the insurers issue.

If your workman causes damage, they fix the issue or claim on their insurance to get it resolved.

The workman is saying they fixed the issue but you have no evidence that they haven't.

Without getting the ground dug up to investigate the repair you have no stance.

Wow, thanks so much for all the replies! I really appreciate it. I will try to reply to as many points as possible now, but thank everyone even those I cannot reply individually to.

I don’t believe a repair has been carried out. I never told my insurer the ground loop had been repaired. My contractor told this (lie) to the insurer and I found out days later from the insurer that this was what the contractor had said.

But do I actually have any contractual obligation to explain in any further detail to my insurer why my heat pump is not working?

There’s nothing about this in the terms and conditions of my policy document.

You’ve said that I’ll be able to recover any costs, and I want to believe you, but am scared that I won’t actually get the money back.

Unfortunately this wouldn’t go through the small claims court as that’s only for cases where the value is £10,000 or less, and my heat pump (plus the costs incurred establishing evidence, plus my consequential losses) are in the tens of thousands of pounds.

Quite a few posters have said I should be pursuing the contractor. They are a medium size company and should have their own insurance.

But my own insurer did not say this to me, they just claimed my current lack of space heating and hot water are ‘unrelated’ to the accidental damage caused in December.

So that suggests to me that I was right to go through my own insurance? If my claim is successful they can then pursue the contractor.

prh47 is a solicitor so this is the advice yoh should be following

Whether your policy specifically sets this out is irrelevant. It is an implied term of any insurance contract that, if there is any dispute, it is up to you to prove that your insurer is liable, just as it would be up to you to prove the contractor was liable if you took action against them (or if your insurer took action against them on your behalf). If it went to court, that is the position the courts would take.

You are claiming that your heat pump isn't working due to accidental damage. Your insurer is entitled to want proof that it is indeed accidental damage and not some other cause that isn't covered by your policy. The fact your heat pump hasn't worked since the contractor damaged the ground loop is persuasive, but it is not proof.

On the costs question, you are entitled to claim any costs you reasonably incur to prove your case. Of course, that only applies if you prove that the fault was caused by the contractor. If it turns out to be something else, you won't get your money back.

Thanks so much prh47bridge, that’s helpful. I’m really taking on board the advice I’ve had this morning and think I probably will get a ground worker in to dig up that section of the garden and photograph the unrepaired break in the ground loop - assuming that’s what’s found. I note that you are not of the opinion that I should be pursuing my contractor directly? As some of the other posters have suggested?

The thing is that this contractor actually damaged my ground loops twice: on the first occasion they fixed the pipe, invited me to look, marked the spot in case I needed to go back to it and then infilled with soil. After the repair my space heating and hot water were all working as normal. On the second occasion the contractor informed me of the damage and my space heating and hot water stopped immediately, the next time I went out to the garden they’d covered the whole area with soil. I only found out second-hand through my insurer days later they were claiming to have repaired the damage. But if they had really repaired it then why didn’t they show me? Like they did the first time?

You can chase either the contractor or your insurance. If your insurance covers it, they are likely to pursue the contractor on your behalf. If they don't, it doesn't stop you going after the contractor.

That's if they don't cover it - you can't get a payout from your insurer and also pursue the contractor!

Annoying as it is to need to provide proof, presumably you're going to need to do this anyway to fix it if your insurer won't?

Velvertear
Loving the tip to check if my legal insurance will cover this - I’m on the phone to my insurer right now, definitely worth me checking this out!

I would ask a solicitor to write a nice letter to the contractor asking them to open up the area where the "repair" was done (all at their cost) to show in good faith, they did repair it. Once proven (not great for you I know) then you can be sure the problem with the ground source may be for another reason.

If they choose not to do this, I would follow up with a solicitors letter detailing this is a "letter before action". This can concerntrate minds to finding a solution.