Loss Adjustor not agreeing with Structural Engineer

piccybabes

HI

Any help appreciated.

I own BTL end of terrace property. Approx 2 years ago, cracks appeared in the gable end, indicating subsidence (the property was built in 1925). Investigation showed saturated weak ground beneath the shallow foundations, but no leak from any drainage pipes.

My Structural Engineer recommends that an underpinning solution costing c £30k is the answer as monitoring over 12 months has shown approx 1mm of movement.

Loss adjuster doesn't agree and thinks that some paving repairs have stopped the water ingress and that patching up and replastering will be enough.

Its complicated by two factors. I changed insurer before finding the subsidence, but the the previous insurer is still liable and when I got the property re-rendered I discovered even bigger cracks in the underlying brickwork ( around an inch wide) that the previous owners had covered up.

Has anybody come across a situation where the Loss adjuster will not go along with the structural engineers recommendations and if so what is the recourse?

Thanks for any help.

huckster

Speak to the Insurers dealing with the claim and see what they suggest is the way forward. The loss adjuster may not even be a qualified surveyor and is over ruling a qualified structural engineer. If this is the case, the structural engineers report can be referred to someone else who is qualified to look at. The Insurers dealing with the claim are responsible for future repairs, if those advised by the loss adjuster failed.

TSx

See the ombudsman guidance here. You may wish to make a complaint to the insurer if you don't think the proposed solution will be effective.

From experience with these types of complaints though, underpinning is usually recommended as a solution because it will also help prevent any future issues (as the FOS say - "Underpinning is generally seen as the most permanent - and most effective - way of stabilising") - however, the insurers only obligation is to repair the current damage to the property (and ensure there is no further movement), not to prevent any future problems.

The cause of damage you've described sounds a bit unusual though - does your engineer agree with this?

piccybabes

Sorry for delay in responding.


Bit of a development - Loss adjuster was far more conciliatory on the last call, and has now started talking about underpinning as a possibility rather than unlikely. We are going to get more external trial pits dug and a level survey to see of there has been wider movement,


huckster - Will do this as a course of action if current discussions breakdown - thanks


TSx - Ditto above - there is some useful guidance there - thanks.

piccybabes

Update:

After 14 months of monitoring and lots of discussions with loss adjusters, two Twitter based complaints to claims handlers and the insurance company there has been a development.

Loss adjustor called. Whilst maintaining the insurers position that they could pay for repairs as and when they were necessary (ad nauseam), they were willing ( off the record) to consider a lump sum payment to me to absolve them of their responsibilities. Full underpinning would be over £100k and there are party wall issues. Adjacent property has no sign of subsidence yet and underpinning my property would create a hard point.

Current unblighted valuation c £150k. Outstanding mortgage £86k.

I would prefer to put the property into an auction, receive the proceeds and then receive the difference, rather than second guessing the blighted value and lose out. The other alternative would be to take the money, live with the likelihood of continuing subsidence and decorate as and when required.






Anybody been through this process?

EdGasket

Not exactly but I did have subsidence repaired by underpinning (due to shallow foundations and clay soil expanding and contracting). Had to fight insurer to get it done and they have since added more exclusions to their policy. However the underpinning for about 5 metre long section was £10K. Maybe you could get some quotes for the underpinning; it shouldn't be as bad as £100K but then you'll still have redecoration. My quotes (about 10 years ago) for underpinning and redecoration were 14k, 17K, and two at over £30K. We went with the 17K estimate which rose to over £20K but only due to the decoration being more than estimated. They used 17 tons of concrete for the underpinning; all done in two weeks by just two workers. (I was amazed they could dig up and shift a full-size skip worth of earth and rubble from the back to the front of the house in 1 day!)

piccybabes

Thanks

The underpinning required is a lot of mini piles along a gable end and both front and back of the property, so it's quite complex.

I might get am underpinning contractor around to see if they can provide more clarity on costs.

EdGasket

Our cheapest quote was piling but we preferred traditional underpinning (lots of concrete!) so went with a dearer quote. I would suggest getting several quotes and see what each suggests.