Multiple-occupancy buildings insurance
Do you work for a broker or insurer handling complaints from freeholders and leaseholders about multiple-occupancy buildings insurance?
On this page you’ll get an overview of the complaints we see and how we approach them.
On this page
Do you have a complaint about a MOBI policy?
Complaints we deal with
We hear complaints from freeholders and their agents – such as property management companies or managing agents – and leaseholders.
Often, issues arise after they’ve tried to make an insurance claim or following the sale or renewal of a policy. For example, they tell us:
- the policy terms weren’t explained to them and now their insurer has declined their claim
- they were told the policy met their needs, but now they discover it doesn’t
- they’re unhappy about a claim decision
- they believe the policy was too expensive, wrongly priced or not good value for money
- they’re unhappy about a term in the policy.
Rules on MOBI policies
When we look at complaints about MOBI, we use the regulatory and legal standards that applied at the time of the event the customer is complaining about.
The Financial Conduct Authority (FCA) amended rules on MOBI in December 2023, which influence:
- who can bring complaints about MOBI to us
- the types of MOBI complaints we can investigate.
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We can look at complaints from freeholders about:
- the sale or renewal of a MOBI policy
- information that the insurer or broker provided
- a claim for damage to any part of the property that they’re responsible for.
We can only look at complaints from leaseholders about a claim for damage to the part of the property covered in their lease.
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We can look at complaints from both freeholders and leaseholders about:
- the sale or renewal of a MOBI policy
- information that the insurer or broker provided
- a claim for damage to any part of the property that they’re responsible for.
New definitions of ‘multi-occupancy building insurance contract’, ‘policy stakeholder’ and ‘leaseholder’ have been included in the FCA's Glossary of Definitions.
If the policyholder is a business – such as a property company – we can help as long as the firm meets our eligibility criteria for micro-enterprises and small businesses.
You will find the updated rules in parts of the:
- Insurance Conduct of Business Sourcebook (ICOBs)
- Product Oversight and Governance (PROD) Sourcebook, and
- Senior Management Arrangements, Systems and Control (SYSC) sourcebook rules
The rules were updated to ensure that leaseholders:
- get clear, accessible information about the MOBI policy covering their homes
- understand how any tenancy charges relating to the MOBI contract have come about
- can identify and challenge poor or unfair practices within the MOBI market.
The rules also require insurers and brokers to:
- consider leaseholders’ interests when designing and distributing MOBI products – as set out in PROD 1.4 and PROD 4
- act in the best interests of policy stakeholders – see ICOBS 2.5.6G
How we settle complaints about MOBI policies
We only look at complaints you've had an opportunity to deal with first. If the customer is unhappy with your decision, or you don't respond to them within the time limits, they can come to us.
Each case is different. We may ask additional questions, or for specific information, but generally we’ll look at:
- relevant laws, rules and regulations, guidance, standards and codes of practice that were in place when the event happened
- the facts and evidence from you and your customer
- the terms and conditions, and the schedule, of the policy
- a copy of the lease agreement where relevant.
When considering complaints about multiple-occupancy buildings insurance, we also need to think about:
- who’s complaining
- what they are complaining about, and
- the relationship they have with your business.
To find out how we approach complaints about damage to a property, select the relevant category in our guidance for businesses on homes and buildings insurance.
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The new rules impose obligations on brokers and insurers to:
- consider leaseholders when designing, pricing and distributing their products, and
- demonstrate that their products provide fair value for leaseholders, as well as to other customers.
However, it isn’t always appropriate for us to investigate leaseholder complaints about price, value or policy terms.
When assessing whether we can look into these complaints, we’ll consider:
- how many leaseholders may be affected and how likely all parties – including the freeholder – are to be eligible, and willing to join and agree on the complaint
- how investigating the complaint – including joining all parties – might impact our operations
- the complexity of the supply chain in the MOBI policy, which may include unregulated businesses.
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The rules require brokers and insurers to provide information as soon as reasonably possible to:
- the freeholders on conclusion of the contract, and
- leaseholders directly, where specifically requested.
If you didn’t provide information – or the disclosure of information doesn’t meet the requirements of the rules – we’ll ask you to provide the relevant information to your customer.
We may award compensation for the impact on – or distress and inconvenience caused to – your customer if we find that:
- you didn’t provide information
- provided information late, or
- the disclosure of information doesn’t meet the requirements of the rules.
We follow the FCA’s dispute resolution rules (DISP) and will take into account how you’ve tried to put things right.
If we uphold a consumer's complaint, we'll tell you what you need to do to put things right. We may also ask you to compensate them for any distress or inconvenience they’ve experienced as a result of the problem.
Business Support Hub
Businesses and consumer advisers can contact our Business Support Hub on 020 7964 1400 for information on how we might look at a particular complaint, or for guidance on our rules and how we work.
We also work with businesses and other organisations to help prevent complaints.
