Burst mains water pipe in new build - compensation?

Tricky97

I moved into a new build house recently and a couple of weeks later the mains water pipe that connects to the house under the sink in the kitchen blew off (before the stop tap), and flooded my entire downstairs. All carpets and flooring are destroyed, plinths in the kitchen units, some skirting boards etc. not to mention my property, which after assessment is running into >10k so far.

Plumber has accepted liability and will be claiming on their insurance for my damage claim and to make the house good.

My question is about compensation from the builder.
Am I in my rights and what is the likelihood of getting compensation from the builder for the stress that this has caused me and my family? Its tough enough moving house especially with a toddler, and then having to move out again and live out a suitcase.

In my opinion this is quite a major fail and should have been 100% sure was correct when fixing. i know they are making good the damage (its a blooming new house so they should!), and should sort the damage to my property, but the inconvenience and distress should also be compensated.

Tricky97

I actually have another query on this... maybe this isnt the right forum..

Should i be going through my insurance company for this? even though the builder told me everything would be rectified and that any claims for damage should be sent to them for the plumbers to cover?

I ask because today i received a letter from the plumbers insurance company advising me that i should contact my own insurers and allow them to deal with rectification.

"the reason for the advice is two fold, firstly your own house insurers will be able to settle more quickly with me as not concerned with the argument as to who was at fault, secondly they will likely settle on a new for old basis."

I wasnt even expecting to use my insurance company as the plumber accepted liability and i was advised to send them the list of my compensation..

now im worried. why should i claim on my insurance? surely that will mean i suffer in the future due to higher policy costs?

Furts

I would be approaching this in a different way to you. I assume you are the new home purchaser and not a tenant of it? If so, I would be looking at the ten year warranty and claiming on that.

You are claiming for a defect in years one and two under the builders liability period. Your claim is direct against the builder and has nothing to do with the plumber.

Out of pocket expenses may not be covered, so this is separate area to look into.

Warranty terms vary depending on who issues them and the year of issue, hence only you will know the nitty gritty here.

Tricky97

THe builder confirms they are liable and any correspondence from the plumbers should go to them.
I have a two year "warranty" and obviously the 10 year NHBC, so i should be ok

brightontraveller

It’s a loss assessors dream they’d hype the payout that’s for sure… If you phoned one up they’d be there in minutes :rotfl:If you go down that route be warned some will charge you directly, some take there % from payout, others add there fees to claim they really are sharks and hit these types of things to the max its what they do everyday..... Sometimes even the thought of them being involved rushes everything through

Tricky97

Ok, but in my example my insurance is not getting involved. I am preparing a list give to a loss adjuster instructed by the builders insurance who will then claim it back from the plumbers insurance.

So would I see any of the additional "maxed" out claim they put in?

Furts

Tricky97 wrote: »

Ok, but in my example my insurance is not getting involved. I am preparing a list give to a loss adjuster instructed by the builders insurance who will then claim it back from the plumbers insurance.

So would I see any of the additional "maxed" out claim they put in?

Perhaps you could clarify here. With your warranty you notify the builder of your issue and they respond by repairing and putting your home exactly as it was before. No hassles, no inconvenience, no loss adjusters, no cost to you and, I think, alternative accomodation. (I know of various families who have been put up in hotels over the years.)

Your "compensation" is up for negotiation and this is the case with any claim. But this would come after you have your home and your life back on track. Obviously the loss adjuster instructed by the builder will whittle down your claim, and enter into confrontation over all this. That is their role, and it appears you have either agreed to this, or decided to go down that route.

Tricky97

Sorry, my original question was regarding compensation and now i am asking other things, this is the complete story:

As per first post, moved in, two weeks later pipe exploded. Flooded downstairs completely. Builder told me that they would get it all sorted asap.
Director of Plumbing company came to see me, apologised and said it was their fault and their insurance would cover cost of fixing, damage etc.

Builder tells me that they are making good of everything and then reclaiming off the plumbers insurance (they do a lot of work for the builder).

I then receive a letter from plumbers insurance telling me to contact my own insurance. I speak to the builder who inform me to send them the letter and do not contact my own insurance as the builder is dealing with it all and i shouldnt be receiving any correspondence.

The builder then instruct their loss adjuster to talk to me and discuss the damage claim to my property.

My original query asked about compensation, which I will try and claim. So my plan is to submit the list of damaged items to the loss adjuster, include all the out of pocket expenses (which builder also agreed to pay subject to receipts), and then ask for compensation on top.

So in this case, is the builder acting in my interest? (effectively) by claiming against the plumbers insurance, ie would they be maxing up a claim? Would i see this or would this be something they take as a %?

Not sure how this works as in 20 years of house ownership I've never made a claim.

The builders employees (site managers, customer services etc) keep telling me to make sure i include everything on the list that was damaged even if very minor, and i should be entitled to compensation, but they arent the professionals in this situation.

Do i have an alternative to using the builders loss adjuster? want to make sure there are no underhand tactics anywhere too.

Furts

I cannot comment on the integrity and knowledge of individuals because, of course, I do not know this.

My concern is the Director of the plumbing company should not have met you, their insurance should not be footing the bill as far as you are concerned, and you should not have received correspondence from the plumbers insurers.

Your contract, and your warranty, is with the builder and by dealing in any way with anybody else you are putting this is jeopardy. The builder is fully responsible for sorting everything and it is the builder that should have met you and not the Director of the plumbing company. This person is an irrelevance to you.

Ultimately if things turn sour you have recourse under your warranty to conciliation, or resolution, or whatever term is entered into your warranty document. However if you have not followed agreed protocol and procedures you cannot expect this mechanism to come to your support. It may be available, or you may be up a creek without a paddle. NHBC love to wriggle out of claims and your experience to date makes you an ideal candidate for such wriggling. Please go forward with caution, and your antenna attuned to any suspicious actions.

Tricky97

Thank you. I agree, i have no idea why the plumbers came to me, like you said, i shouldnt even know which company they use as i purchased the house from the builder and its they who are responsible.

brightontraveller

It’s a common game admit liability but cloud any information they give claimant? Inform claimant you’ll need to send this to a then to b etc NHBC (Or companies that use them as a shield third party type ) tend to have a lot of pass the buck, merry go round scenarios which create confusion for client/claimant ? Some will indeed do the works then claim back from third parties insurance? But many will wait until third party insurance pays out then do the works and use many avoidance and misinformation tactics to delay as long as possible

Loss assessor = Shark that works for you? There job is too get maximum payout for you ( and most likely themselves too )

Loss adjuster = Shark that works for them? There job is too insure you get minimum payout whilst there client either saves or profits ?

They have appointed a loss adjuster which some may see as “on your side “ they are normally far from that there job would be get minimum payment to you from other party but to get maximum payment /savings to there client

e.g claim xxx from plumbers insurance on behalf of builders give x to you

This is not always how it works but in a high % of the time it will be