Profitting From A Buildings Repair Insurance Claim

acbleeds

Hi, this is my first post and I have specifically joined in the hope of getting some advice if possible.

I have recently been asked by the policyholder to provide a quotation to the insurance company to contract the works to repair a property after water damage and the insurance company has accepted this and given the go ahead. They have then said (in writing) that I am working for the policyholder and will be paid directly by him (to basically prevent the risk of insurer paying me and me running off with the moeny without doing the work so they say).

The policyholder has received the money and asked me to go to a meeting with him. I arrived and unknown to me, he has already completed most of the work (the insurance company were aware he had started some work because of it being nearly 3 months since the flooding, and with the insurance company constantly dragging its feet, but I doubt they are aware of anything like the amount he has done). At the meeting he basically informed me that he was using his own contractors to do the work who were much cheaper and he also hadn't said anything to me because he has put the ceilings and decoration back in a very different way to the original and those I was quoting for and didn't want me to have that in the back of my mind when I was negotiating the cost of repair with the insurance company.

Because he has put things back for much cheaper than my quotation of nearly £60,000 (this is a very high end property and a lot of damage was done), and is not bothering to repair a few items that were damaged but still look reasonable, but has taken the full payment of this value from the insurance company, he is intending on pocketing the difference (I anticipate this is probably at least £40,000). He wants to pay me for the time I have spent on the quotations and specifications of repair etc and a 'thanks for your efforts' but then keep the money and hence profit from the claim.

I would like to know where he stands on this, whether he is being fraudulent or is entitled to do this or whether I am able to insist I complete the works and am paid in full for doing so.

Many thanks in anticipation of any advice and sorry for this post being so long winded.

mikey72

Walk away, and tell the insurance company where you stand.
Or take the bung, and accept that any future claim will be investigated, and if they ever find any work not to the spec you put in, it will be back to haunt you.
You have no chance of getting the work, as the money has already been spent.

Or, take an amount to cover your costs from the customer, but only enough to cover the costs, then walk away. And shop him.

vaio

mikey72 wrote: »

......take an amount to cover your costs from the customer, but only enough to cover the costs, then walk away. And shop him.

x2................................

dunstonh

It's fraud. Plain and simple. Do you want to be party to the fraud and the potential consequences of that?

I would agree with the above, that you should shop him. Just look at all the posters complaining about rising insurance costs (much of which is down to fraud). You cannot complain about costs on the one hand if you knowingly commit insurance fraud on the other.

McKneff

They will catch up with you in time, do you really want to spend the rest o your life worrying about it till they do.

if you dont 'shop' him, you yourself are committing a cruminal offece, how would a criminal record go down with your when yu apply for a job
or apply for insurance (lol) you know yourself to avoid future problems you must be scrupulously honest with insurnace companies.

rogerblack

I'd be wanting to maximise the likelyhood of me being paid, while eliminating possibilities of legal action.

It seems likely he'll ask you to sign something saying that you will not go to the insurance company, or police.

Before meeting with him, and obtaining payment, I would write a (special delivery, or perhaps even notarised) letter to the insurance company outlining the facts of the case, and detailing your costs to date, as well as the fact that you will return any moneys outstanding over and above that amount to the client.

This way you can agree to not contact the insurance company (you already have), and can't be alleged to be attempting to be a party to the fraud.
(please note, I'm not a lawyer)

vaio

vaio wrote: »

mikey72 wrote: »

......take an amount to cover your costs from the customer, but only enough to cover the costs, then walk away. And shop him.

x2................................................................

Having said that, I suppose it depends on the basis on which the pay out was made.

The insurance have agreed a value for the damage and don't want any further involvement and presumably would not pay if any further damage was uncovered, sort of payment in full & final settlement. I'm thinking they can't have it both ways, if they avoid responsibility for the standard of the repairs and any additional works then they can't complain if the policy holder does the work on the cheap (which will presumably be reflected in lower value of the property when completed)

Obviously none of this applies if the policy holder is representing he's using the OP to do the repairs but if it is "full & final payment" then I can't see a problem.

Either way the OP should get his time paid for but it sounds like the policy holder wants to do this

mikey72

vaio wrote: »

Having said that, I suppose it depends on the basis on which the pay out was made.

The insurance have agreed a value for the damage and don't want any further involvement and presumably would not pay if any further damage was uncovered, sort of payment in full & final settlement. I'm thinking they can't have it both ways, if they avoid responsibility for the standard of the repairs and any additional works then they can't complain if the policy holder does the work on the cheap (which will presumably be reflected in lower value of the property when completed)

Obviously none of this applies if the policy holder is representing he's using the OP to do the repairs but if it is "full & final payment" then I can't see a problem.

Either way the OP should get his time paid for but it sounds like the policy holder wants to do this

It's ok until the homeowner makes another claim, or maybe tries to sell, or until the building inspector shows up. Then any possible incorrect or substandard work could be blamed on the op, or fraud brought up.

That's why I wouldn't be wanting my name associated with it.

PNPSUKNET

Just hope the police dont ever investigate, as you would be the party to fraud hence why he wants to pay you

Auntie-Dolly

I can't imagine the insurer would pay out £60000 without their own assessor seeing the damage. Perhaps they have arrived at their own figure & the homeowner has accepted this & arranged their own repairs. Submit your invoice for the work you have done & leave it at that.

Barstaple

I have looked into your case and read all the suggestions. I think you now have a clear idea what options do you have? But I really find this very interesting and there is a lot of learning in it.