Third Party Insurance Claim - Dilemma

GossipGirl

Hi everyone,

This is my first post and I would really appreciate your input with this problem.

The story goes like this. My Mother noticed water on her hallway ceiling and thinking it was her bathroom which is directly above she got my brother to take a look for any damage/leak. He removed the bath panel and couldn't find anything. The leak continued to get worse so she called a plumber, who could not help either.

Finally, my brother contacted the owner of the house next door who is currently renting his house out to students. As it so happens the neighbors bathroom had been leaking for a number of weeks and has caused damage in his property also, but the students did not report the problem. Finally a repair is carried out and the leaking stops but there is considerable work required to repair the damage.

At this point you would expect the owner to be grateful that we have made him aware of the problem and apologetic but - NO!

We contact the owner over a number of weeks and each time he promises to provide his insurance details and he doesn't. At this point I question whether he even has insurance. he then changes his story and offers to bring round a builder, when asked why it has to be a builder of his choosing he hangs up the phone. We have had problems with the owner previously, his previous tenants broke my mothers fence and she had to pay for the repairs herself. I am considering reporting him to the tax man as I know he doesn't pay tax on the income from the rent. Anyone know how to make a tip off?

In the meant in my mum contacts Halifax who she has her home insurance with and they offer to send round a surveyor. She explains she wants the other party to cover the costs and they say she is under no obligation to proceed. She gets a report outlining the damage and then someone from the Halifax calls her and say they are crediting her account with £986.00 which is the sum they estimate the repairs to cost less £300.00 excess. My mother normally consults me on anything’s like this but she felt put on the spot. They didn't really ask her they told her, they already had her bank details so they advised they would be doing a direct credit and they expect my mother to find someone to complete the repairs for the sum received. Which is vastly under estimated, as the surveyor recommended re-plastering the ceiling and walls affected and the whole hallway will require decorating after the work is completed.

My problem is two fold, dealing with a neighbor who is a crooked. Literally! He has fled the country a couple of times and the police have come looking for him. He has no intention of providing any compensation. Is there anything we can do about this? Is it worth taking him to small claims court?

And, secondly we aren't happy with how Halifax has handle things. They have no interest in assisting with a claim against the other insurer, if there is one. they expect my mother to arrange the work to be carried out but aren't allowing her to get the necessary quotes for the work to be completed.

Sorry for the long post, I've tried to include all the relevant facts. my mother is a pensioner and I get really annoys when people try and take advantage of her, as her income is limited and she is law abiding unlike the owner of next door.

Many thanks

olly300

Your home insurance is there to compensate you even if you know a third party has possible liability. There is no way you can prove that the liability was not due to an accident on the third party's part so you can't take it to court and that's why the Halifax isn't interested in pursing it.

The landlord is doing tax evasion not tax avoidance. Tax avoidance isn't illegal tax evasion is. The hotline is here: http://www.hmrc.gov.uk/tax-evasion/index.htm

huckster

sutherb wrote: »

they expect my mother to find someone to complete the repairs for the sum received. Which is vastly under estimated, as the surveyor recommended re-plastering the ceiling and walls affected and the whole hallway will require decorating after the work is completed.

Your mum needs to get another estimate for the works and to submit this to the Halifax for their consideration.

In regard to Halifax pursuing the neighbour, I agree with olly's comments.

GossipGirl

Thanks for your comments.

My mum has since rejected the offer from halifax and the operator she spoke to advised her that halifax would not be prepared to increase the amount offered as this is the sum sanctioned by the surveyor.

So we will be getting a couple of quotes for the repairs, so that we know exactly what it would cost to put right.

Astaroth

To hold the other party liable you would have to prove that they were negligent. In other words they have actively done something they shouldn't (or failed to do something they should have) that directly resulted in the damage to your property.

Unless you can prove that the home is in a general state of disrepair then you have little chance of success against the landlord. If you can prove the students should have known about the leak then you may have some chance against them but being realistic, are a bunch of students with no significant assessts going to be likely to pay up over £1000 for damages?

These types of cases are almost always claimed on the insurers of the owner of the property damaged and rarely successfully claimed against the neighbour etc.

On the settlement amount. Get 2 builders to provide a quote for the work. Remember that you are only insured for the damage caused and not for redecorating the whole hall way! (there are plenty of posts on here about this issue if you search). If the lower of the quotes is higher than the amount the survey said then lodge a complaint in writing with photocopies of the estimates with the insurers advising you will go to the FOS if it is not resolved to your satisfaction