Insurer won't pay, may lose house.

lisyloo

That's what my kid brother thought too but his soon to be ex wife's solicitor put him straight

Well it does bring up an interesting point
Maybe his wife would have a claim on his assets. That's certainly an angle to look into.
I'm pretty sure though that business men in the past have put their houses and assets in their wife's name to protect them in this situation.

Is this a case of the law is on the side of the person that has the most money to pay the best barrister?

If the wife has been a full time carer for part of her career and "sacrificed" her career for his and the family then perhaps she has a claim on his pension as well?

One_Five_Four

Thanks for the further replies folks. I'll keep you posted.

One_Five_Four

Sorry to drag up an old post, but your further advice would be appreciated.

It seems that my brother-in-law will have to pay the claim himself now, which of course he can't afford. To save you reading all the original post, he accidentally set fire to the roof of a customer's bungalow he was working on, his insurers said he hadn't complied with his policy conditions and wouldn't pay, the Ombudsman subsequently agreed with them, leaving him with a massive bill (we still don't know the exact amount, but it will be tens of thousands).

It has been suggested he tries to pursue the brokers who sold him the policy as they perhaps didn't point out all the conditions properly when he took out the insurance about six years ago.

They were a small firm who have now been taken over by a bigger one.

My question is, would the new firm still theoretically be liable for the alleged mistakes of the old one? I find that unlikely, but all straws are now being firmly clutched at.

Thanks for any help, as always.

154.

huckster

Yes in most cases, a new company will take over liability for the previous companies errors. Plus I am pretty sure there is some FSA requirement for this to be the case, to protect consumers.

Suggest that your BIL obtains legal advice and pursues this through the courts if necessary. A loss at the FOS, does not mean that it would go the same way in court.

dacouch

huckster wrote: »

Yes in most cases, a new company will take over liability for the previous companies errors. Plus I am pretty sure there is some FSA requirement for this to be the case, to protect consumers.

Suggest that your BIL obtains legal advice and pursues this through the courts if necessary. A loss at the FOS, does not mean that it would go the same way in court.

Assuming the broker did not point it out, the amount of roofers I explain the heat warranties to and I know for a fact they either intentionally ignore them or forget about them instantly

One_Five_Four

Thanks very much folks.

One_Five_Four

Hello again Folks,

This sorry tale is still ongoing, and the stage we have now reached is that my Brother-in-Law was finally sent a bill (itemised over 94 pages) by the householder's insurers (for the damage caused in the fire he accidentally started) for just under £139,000 back in March this year. Better than we expected, but still a huge amont of money.

Having fruitlessly spent about £25,000 of his life savings on solicitor's bills to try to get his insurers to pay out, he was left with just under £11,000 which he offered in full to the insurers of the house.

After five months, they have now come back to him saying they appreciate the offer, but giving full details of his home and his mortgage (so clearly they've spent the time looking into his finances) and suggesting he tries to raise more money for them as a loan against his house.

My question now is, in today's climate, will a man of almost 59 be able to borrow much against his house, given that he owns it jointly with his wife and isn't far from retirement?

He's a director of his own limited company (but still effectively a self employed property repairman), his salary is only about £15,000 a year (times have been tough) and the equity in his half of the house is probably about £75,000. I think the mortgage is about £25,000, but I don't know more on that. The house is valued at just under £200,000.

If anyone needs more details, please ask, and once again, many thanks for all the help.

Quentin

Your brother now urgently needs to get advice on the house situation.

As was advised in this thread last year, being jointly owned doesn't stop the house being sold following bankruptcy! (There are steps he can take now to safeguard the house)

rs65

One_Five_Four wrote: »

He's a director of his own limited company (but still effectively a self employed property repairman)

Sorry I can't answer your question about borrowing but your first post said he wasn't a limited company. Is the Ltd status new? Was the original work carried out as a sole trader or a Ltd Co?

vaio

Reading the OP it looks like the Ltd company is new.....

One_Five_Four wrote: »

.........The house owners have had it rebuilt and are living there again, their insurers having paid for the work, but their insurers are now pursuing my BIL for £190,000 (not a typo) and, as he wasn't a limited company, he is likely to lose his own house. He is 57, married, and was winding down towards retirement........