Help against loss adjustor!

kierancassidy

Hi All,

I recently had a problem with my bathroom, i was appointed an adjustor (cunningham and lindsey) whom told me to get a quote from a builder.
The builder submtted a quote and was told to drop it by £1200 which he did. The loss adjustors agreed to the new quote and work commenced. A few weeks later they sent a letter stating that the payment is in the post and the claim has been cosed. Since then no payment arrived, I caled them and they have said that the original quote was to high and that they refuse to pay, the builder has walked off the job and will not finish job. He has also seeked legal advice and has been told he may have to sue me! How can a company agrre a figure let the job start and then change the figure? Anybody have any ideas as to how I can get this resolved quickly?

dacouch

By pass cunninghams and speak directly and politely to the insurer, they should sort it out.

Did you only get one quote? did cunninghams get another quote?

kierancassidy

Thanks for the reply.

I have tried to speak with the insurance company but they have just told me that C and L are dealing with the case.

The builder gave a first quote then a second which was agreed and then after more queries reduced it again an extra £1000.

When I spoke with C and L they said that they have given the builder a final offer and were unwilling to help any further!

dacouch

Which insurer is it?

Have they said why they think the quote is too high?

kierancassidy

Avon.

They sent a team to look at the damage 3 4 months previous and said that they can patch the affected area . The area got a lot worse and the 2 nd time I contacted them they sent C and L who agreed that the whols bathroom will have to be replaced

SolicitorMidlands

Have you got written confirmation from them that they agreed the quote?

If the builder sues you then let C and L know you will bring them into the proceedings as second defendant.

kierancassidy

Hi Solicitor midlands,

They wrote to me saying that the payment was agreed from the insurance company and that it is in the post, I never recieved written confirmation to start the job but was told verbally to start and they have confirmed that is true.

Wol2

Hi Kieran

Not quite sure from the information available exactly what is going on but it sounds to me like the loss adjuster agreed a price with the builder who has submitted an invoice for a higher amount? The loss adjuster will only pay the agreed amount and therefore the builder is looking to recover his additional costs from you?

Therefore It's important to establish the order of events and who said what to whom.

At some point, the loss adjuster has agreed the quote from the builder and work has been authorised to go ahead- did they notify you of this or did they deal direct with the builder? You need that evidence. How much was the quote in total?

Who instructed the builder to start work - did you or did the loss adjuster do this direct with the builder? Was any type of written contract entered into?

At a second point the builder has submitted an invoice which needs to be paid - either to yourself or direct to the loss adjuster. Which was it please and have the works been completed satisfactorily? Did that invoice reflect the amount originally agreed or has the builder tried to up his price (not uncommon for building work covered on an insurance claim to be billed at more than the original tendered sum....and then the fight starts.... ) What is the value of the invoice(s) submitted by the builder?

The loss adjuster have confirmed in writing that they have sent a cheque in payment (presumably full and final?) Have you that evidence and who did they send this confirmation to? What was the amount? I suspect they sent it out for the agreed amount, not the final amount the builder has invoiced for.

During the works did you instruct the builder at any time to do any additional work or make changes to the agreed work to be done? If so then it is right the loss adjuster refuses to pay for this extra work and the builder can rightly pursue you for the extra cost.

Either The cheque hasn't arrived, (in which case it is a simple matter for the loss adjuster to cancel it and issue another) or the builder is chasing his additional money. If the loss adjuster agreed a price with him, he can't just charge more - if he undertook any work outside of the original sum (even if it was found to be necessary as works progressed) the builder should have notified either you or the loss adjuster, provided a quote for additional works and awaited approval from the loss adjuster before going ahead.

Where do you stand in all this?
Normally in an insurance claim it is you the client who contractually engages the builder and therefore you that they pursue for payment. If you have only instructed the builder to complete the works as agreed/specified by the loss adjuster, they have no reason to submit a bill over and above the agreed tendered sum and you will need to provide evidence to defend yourself and show the bill is unreasonable if you go to court (not as duanting as it seems as it wil probably be small claims court)

If the loss adjuster had not been diligent in their handling of this claim, and has taken responsibity for instructing the builder on themselves (and the builder has taken his instruction from the loss adjuster)...then his beef is with the loss adjuster and not yourself. But he can still try and come after you - however if this problem has been caused by the loss adjuster you should then be able to seek redress/reimbursement of your losses via the insurance company in the form of a written complaint.

You need clarification from the loss adjusters of exactly what the problem is - is it
a) no payment at all or
b) no additional payment over and above the quoted and agreed sum.....get details of what the additional charges are and what for

If the loss adjusters won;t answer your questions, (which they should reasonably do) get directly onto the insurance company without delay and make a formal complaint (ie don;t just speak to a claims handler). Tell them you want this information released and want to know what instructions have been issued directly to the builder from the loss adjuster and you want it FAST. Ultimately your contract is with the insurance company and they are liable for the actions or inactions of their nominated agents. They have a duty of care to ensure your claim is progressed diligently and correctly and therefore they should put pressure on the loss adjusters to comply with your request.

Once you have this info come back (or PM me) and we'll see where you stand with the builder, the loss adjuster and the insurance company. And if the builder does take you to court, then you may also need to cite the insurance company as a defendent.

Now that I've worked all this through it is starting to sound to me like the builder may be tryng it on - so don;t give in to his demands until you are in full possession of the facts. If the builder has sent you a written demand for payment, send a holding letter saying the account is in dispute while you investigate the matter.

Hope this helps and that you get sorted soonest.
KInd regards
Wol2
xx

kierancassidy

Hi WOL2,

Thanks for your support,

The loss adjustor was quoted £12000 first by the builder , this was refused by LA, the builder then came back with a quote of £10 900, this was faxed over to LA and he confirmed with me verbally that work could commence. I instructed the builder to start work.( No contract ) The builder has since left the job without finishing the work so has not invoiced me. The builder has been informed that he should sue me although on the 17th of december a letter was sent out to me confirming that a final payment of around £9000 minus my excess will be arriving.

Their was no other additional works and after speaking with LA from what I can gather the LA approved the price and then when they have gone to the insurance company they have said that it is too much money. Meanwhile the LA has been trying to get the builders price lowered. The builder agreed to lower more and then was asked again so decided not to continue with going back and forth with LA on prices and simply take legal action. The legal company have said that he has to take action against me, meanwhile I still have no finished job and the LA refuses to send another contractor out to finish off job!

i will get back soon when i have spoke with insurers!

thanks again

kierancassidy

Hi WOL2,

Thanks for your support,

The loss adjustor was quoted £12000 first by the builder , this was refused by LA, the builder then came back with a quote of £10 900, this was faxed over to LA and he confirmed with me verbally that work could commence. I instructed the builder to start work.( No contract ) The builder has since left the job without finishing the work so has not invoiced me. The builder has been informed that he should sue me although on the 17th of december a letter was sent out to me confirming that a final payment of around £9000 minus my excess will be arriving.

Their was no other additional works and after speaking with LA from what I can gather the LA approved the price and then when they have gone to the insurance company they have said that it is too much money. Meanwhile the LA has been trying to get the builders price lowered. The builder agreed to lower more and then was asked again so decided not to continue with going back and forth with LA on prices and simply take legal action. The legal company have said that he has to take action against me, meanwhile I still have no finished job and the LA refuses to send another contractor out to finish off job!

Wol2

OK ...bit of a mess.....and may need to have a chat on the dog and bone but.........

1) The loss adjuster gave you authorisation against the quoted sum to go ahead. If the insurance company then renege it is not your fault - it is an internal matter for them to sort out. However this puts you fairly and squarely having to make a compaint to the insurance company and recover any losses from them. You are not responsible for the actions of their nominated agents or any miscommunications between the insurers and their agents....THEY are.

2) Your personally have a contract with the builder as you issued the instruction. However, the builder is also being a !!!!!!. He hasn't finished the work. He hasn't sent you a bill. He has no claim against you until he does both. Adn abandoning site and not putting his concerns in writing severely weakens his case. But it WILL be you he claims against and you will then need to offset costs in your counterclaim against the insurers...taking the £9k you should receive by cheque (yawn wonder how long that will take to arrive ) from the insurers into account but adding in the cost of a new builder to complete the job.

Oh dear...so sorry you have ended up in this situation...

You need to write letters to cover yourself on both accounts. It is NOT fair you are in this situation and it is NOT your doing. Can you ring me on friday afternoon - too much to post here......I will PM you my number.

Hugs - this can be sorted...
Wol2
xxx