insurance excess dispute with builder

sootyboots

We are being asked to pay for extra insurance work to a house we rent out, and we did not agree it beforehand. The house was my mother-in-laws, and was rented out before her death by the trustees (solicitors) to pay for residential care. They took out building insurance, continued by the management company we use, but it was below the cost by 17%, and we were asked to pay for this extra (abt £215 + excess) on the initial work before commencement (done). But a phone call from builders on day 2 of work said more work needed, the bathroom wall wasn’t supported properly, we asked for details of work before agreement. It came 5.30pm that day, we disputed by email, and highlighted the couple of items that we would agree was needed(about £270 worth, of which we would pay 17%).

The builders allege we agreed all costs, have done all (to good standards) and are chasing for the 17% which is £232 extra. We are in dispute with the builders, the insurance company are on our side, have tried to mediate on our behalf, but the loss adjusters and the builders are saying we agreed beforehand. The initial cost was to replace flooring and support noggins etc after bath seal went (tenants did not notice until much damage was done), extra cost was for support noggins (disputed!) and remedial painting. Fine, except that the wet patch was on one wall downstairs, and they decided to charge for painting a VERY big split level hall, staircase and landing!

The owner of building contractors has now rung me and threatened debt collections for the £232 extra money (scarey, loud, angry man). We have been advised to make a “without prejudice” payment in full, then implement the complaints procedure. What should the letter include that will accompany this payment?

vaio

your builder or the insurance company's?

sootyboots

We've been told to deal directly with builder.

vaio

who chose the builder, you or the insurance?

are the insurance paying their share of the disputed works?

sootyboots

Seems that building contractors were suggested by either loss adjusters or insurers, we don't know. We have now checked to see if there is a link between Loss Adjusters and Builders, but nothing in writing.

sootyboots

We are assuming insurance company have paid their bit, have not been told otherwise.

vaio

if the builder, loss adjuster & insurer all agree that the work was necessary then I'd say you have no option but to pay your share.

I guess legally the repair contract is between the builder and the insurer so if you don't pay then the insurer will and then chase you for your share under the insurance contract they have with you.

I'd suggest not huffing & puffing with "without prejudice" payments, either pay up with good grace or refuse to pay and let them sue you where a judge will decide who is correct.

Unless you have structural/buildings expertise then the noggins issue is pretty much guaranteed to go against you, on the painting issue the other side will no doubt argue that then don't just paint the damaged bit, they do the whole room so it all matches, a view you would no doubt support if it was your home.

Two things I don't understand, why do you think the insurer is on your side? and why is the painting extra when it was surely apparent from day one?

sootyboots

Insurer feels that loss adjusters and builders are being unreasonable, that extra work done was not all agreed, and have asked loss adjuster for proof of agreement, which they cannot provide, and that there is a suspicion that loss adjusters and builders may have some link.

I really wanted advise on wording for letter to builder so as to not preclude any action on either side.
Thanks

vaio

in which case I'd be surprised if the insurer had paid their bit.

As everything is actually part of the claim (but with you having to contribute because of the under insurance) I'd be inclined to let your insurance company sort out it what was necessary and once that is done you pay your contribution.

sootyboots

Is it usual practice to pay the builder the excess rather than the insurance company? We have never had to claim before, even for our own houses!
We are going to pay it, as the hassle is too much, and the insurance company say it is up to us. But feel aggrieved.
Many thanks for all your comments