Paying home insurance excess for someone... advice needed

ashturner

Not sure if I've posted in the right place here, so please move if so!

Anyway, I'm a tradesman and I've carried out some work on someones house, which resulted in quite a bad leak through the ceiling into the living room. The work was only a small job and was a cash job but they asked for a receipt, which I gave. I should probably mention that after all the work was carried out I checked that there was no water dripping from any joints and was satisfied this was the case so left.

The person asked if I had any public liability (which I don't, but have since got, as the experience has had me very worried about a more serious thing occuring!). Anyway, I gave them a refund for the work that has been carried out but they also want me to pay the excess on their home insurance which is who they are going through for the repairs, the excess is £300, and I reckon the damage would take no more than £600-£1000 to put right under normal circumstances, however as this is an insurance job you can probably double that!?

To be honest, I'd happily pay the £300 excess and draw a line under the whole situation, and treat it as an expensive learning curb. The thing I'm worried about is paying the excess then a few months down the line their home insurance coming to me to reimburse them for the payout they've had to make, so paying for this + the excess. Now what I really want is for someone in the know to explain how this process works and whether I should pay the excess and whether or not the home insurance company is likely to come after me to reimburse them.

So basically in paying the excess do I in someway admit responsibility for the leak? Is there anyway I can do some sort of letter/contract outlining that I'll pay the excess so long as I'm no longer responsible for any further costs incurred as a result of the home insurance claim? The client seems fairly amicable considering the situation but at the same time I don't really know them.

Any advice given is greatly appreciated!

paddyandstumpy

Dont pay their excess! As you pointed it out where will it end?!

Why did you refund the cost of the job? Do you feel it was your fault?

Quentin

You already look to have admitted to this being your fault by agreeing a full refund for the job.

What you can do now is write to the customer and tell them that the refund was a goodwill gesture and not an admission of liability. And that you are not liable for their excess or any other costs and will not be paying them.

It is up to them or their insurer to prove that you were responsible for the damage (in court if necessary), and if they cannot then you owe them nothing.

(If you had liability insurance the same situation would have applied - they would only have paid out on your admission of negligence or them proving you were)

ashturner

Thanks for the replies so far!

So I'm not going to end up in trouble for not having public liability insurance? I've learnt my lesson now and got it atleast so I'm semi-glad about that!

I refunded the job as they had to have another plumber over and pay the same amount to repair what had gone wrong, so sort of felt it right to give back what I'd been paid so they're not even more out of pocket? When I agreed to it though I didn't say 'I'll give you a refund as I've clearly done something wrong', but as soon as they'd mentioned they had to pay someone the same to come out and carry out the work again I said I'd reimburse them what I'd been paid.

How likely (in your experience) is it that something like this would go to court? The reason I ask is the only reason I'm even considering paying the excess is because I don't want the issue to go that far and just want it finished with and to move on and retain a good reputation (£300 is a small price to pay for a good reputation in my opinion). I'm still not entirely sure myself how the leak happened though, as I said I checked all parts I'd worked on (the customer even checked over and was happy), and didn't notice any water leaking, and for a leak like that to build up over a few days and come through the ceiling baffles me.

As you said about saying it was a goodwill gesture how exactly should I word that? When they mentioned about paying the excess I said I wouldn't have the money until atleast next week, but they want me to provide written confirmation that I'll pay it and when I'll pay it by. Should I put that I'd pay a percentage of the excess but that this is in no way an admission of liability for the damage caused and merely a gesture of goodwill, the reason I'm considering this (plus the delay in paying) is to not tarnish my reputation and to keep them off my back.

Quentin

If you are "happy" to pay them off rather than go to court, then you won't have to go to court if it comes to that (as you would get the opportunity to simply pay the sum being claimed and thus end any legal action that they (or their insurer) might take against you.


If you pay them any more then you will be admitting liability, meaning they can come after any other uninsured losses they experience over the incident and can also expect the possibility that their insurer will come after you to reimburse their outlay over the claim.


Maybe you might consider taking proper legal advice over this rather than attempt any offer to pay anything more!


If you feel you are blameless, then tell them that you aren't liable/weren't negligible and the reimbursement was a goodwill gesture, and you won't be paying any more.

McKneff

OMG. Think yourself lucky that it was a leak, it could have been a spark from a lamp or something and you burned the buddy house down and the car in the drive.....

Pa_Ja

You could agree to pay the excess upon completion of all the remedial work, (Ask them to provide proof that this has happened). I would not just handover £300.
As you say, they may slag your business reputation. No doubt they already have to relatives, friends, neighbors, etc... You'll want to keep it off social media.
You could also offer half the excess upfront and the rest upon completion.