The Financial Ombudsman Service (FOS) is an independent body that helps settle disputes between consumers and financial services companies – including home, landlord, and business insurance providers. If you’ve raised a complaint with your insurer and haven’t received a fair resolution, you can escalate the issue to the Financial Ombudsman.
This service is free and available to homeowners, landlords, and small businesses. The Ombudsman has legal authority to investigate complaints and can require insurers to pay claims, increase settlements, or provide compensation for distress and inconvenience.
When can you go to the Financial Ombudsman?
You can escalate your insurance complaint to the Ombudsman if:
- You’ve made a formal complaint to your insurer and:
- Received a final response you’re unhappy with, or
- 8 weeks have passed with no resolution
- You believe your claim was:
- Unfairly rejected (repudiated)
- Underpaid
- Mishandled or delayed
- Still within the six-month deadline from the insurer’s final decision
What types of issues does the Ombudsman resolve?
The Financial Ombudsman can step in when there’s a disagreement over:
- Unfair claim refusals (e.g. storm damage, burst pipes, or fire claims)
- Low settlement offers that don’t reflect the true cost of repair or replacement
- Delays in assessing or paying a claim
- Misinterpretation of policy wording or exclusions
- Poor communication or customer service from the insurer or their representatives
The Ombudsman’s role is to decide whether the insurer has acted fairly and reasonably, not just whether they followed their internal processes.
What happens if the Ombudsman agrees with you?
If the Financial Ombudsman finds in your favour, they can:
- Require the insurer to pay your claim in full or part
- Recommend a revised settlement offer
- Order interest or compensation for:
- Stress and inconvenience
- Delays in payment
- Financial loss caused by the insurer’s handling
The decision is legally binding if you accept it. If you choose not to accept, you’re free to pursue legal action instead.
Who can use the Financial Ombudsman Service?
You can use the service if you’re:
- A private individual (homeowner, tenant, leaseholder)
- A landlord (with personal or small-business use insurance)
- A small business with:
- Fewer than 50 employees
- Annual turnover under £6.5 million
- A micro-enterprise, charity, or trust (within defined thresholds)
If your business is larger or your dispute involves complex issues or high-value claims, you might be better served by appointing a Loss Assessor who will prepare your claim, liaise with the insurer on your behalf, and ensure you receive a fair and full settlement.
FAQ’s
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Do I need legal representation to go to the Financial Ombudsman?
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No. The service is designed to be accessible without legal or professional representation. That said, some policyholders choose to work with a Loss Assessor to prepare and present their complaint more effectively.
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Is there a cost for this service?
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No. The Financial Ombudsman Service is completely free for consumers and eligible small businesses.
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How long does the process take?
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It varies based on the complexity of your case, but many complaints take several weeks to months. Cases involving vulnerable individuals or urgent financial harm may be prioritised.
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What if the insurer ignores the Ombudsman?
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If you accept the decision, the insurer is legally obliged to comply. Ignoring an Ombudsman ruling can lead to regulatory action and further enforcement by the Financial Conduct Authority (FCA).
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Who governs and funds the Financial Ombudsman?
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The Financial Ombudsman Service is governed by the Financial Conduct Authority (FCA) and operates independently of insurers. It’s funded by the financial services industry through a combination of annual levies and case fees paid by firms when complaints are investigated.
