Alternative accommodation insurance expiring due to delays in building repairs next door

littlerock

My neighbour had a major house fire last June. It was attributed to their negligence.( They are very old with dementia) Our house which is halls adjoining nearly went too. It was saved by gallons of water pumped in by fire brigade. As it result it suffered considerable water damage and has been uninhabitable since. We have been living in rented accommodation paid for by our insurers ever since. Our house has to  be repaired at same time as theirs because we share a party wall which needs replastering.  Repairs started in early March but stopped with lockdown. Now builders for next door say it has become  structurally unsound and will need rebuilding. Our Insurers have a fixed limit  on alternative accommodation with no exceptions. Our limit run out in two months and we face bring homeless . No one expected it all to take so long. By then we will be in a new insurance year. Can we put in another alt accommodation Claim for the new year.?  

rs65

The claim attaches to the policy when the event happened - unless your policy says otherwise

littlerock

I see that but the assumption was made by all parties at outset that we  would be back in our repaired home well inside the year. Now we are facing the prospect of it being much longer if next door has to be demolished - never envisaged - as it has turned out to be in such poor condition even before the fire. The owners are I am assured,  comfortably installed in a local care home - not affected by coronavirus - and their sons are looking forward, one has told us  to inheriting before long (parents in 9Os) a well restored Victorian house. Our lovely cared for house  is uninhabitable  and we face being homeless in two months and yet we are totally the innocent parties. I should add we are fully insured for alt accommodation up to limits of of policy.

 

davidmcn

littlerock said:

I should add we are fully insured for alt accommodation up to limits of of policy.

The limits of the relevant section of your policy, I take it? If this has been caused by the neighbours' negligence then they should be picking up your costs, so you claim against them (and they pass it on to their insurers). Whether your legal costs are covered by your policy, I don't know.

littlerock

Yes policy has clause with ceiling amount added a few years ago..Before that it was %of house value which would have more than enough  . Actual buildings insurance is unlimited. I am claiming on my insurance  policy and next door claiming on theirs. The fire brigade found the fire was caused by storing combustible materials too close to the open fire. It was particularly fierce because the owners  were hoarders and it was stuffed full of 60 years hoarding. It smouldered for 3 days.  My house was saved by heroic efforts of fire brigade but roof destroyed and suffered severe water damage. The neighbours are in their 90s and suffer from dementia.  Their son is acting for them and does not answer any correspondence.

davidmcn

littlerock said:

I am claiming on my insurance  policy and next door claiming on theirs.

Presumably your insurers will be recovering from theirs though anyway?

littlerock

They have said that is what they will be doing, yes .

Chickenlips

No, it is the limit per claim normally meaning it cannot be extended irrespective of fault. The recovery simply means that when you take over paying for the AA, this is an uninsured loss you'll add to the list. 

Certainly worth looking at policies offering 2 years plus. Low limits are often a sign of cheap cover.

Not the news you want, but the terms of your policy are what you're entitled to. No if or but. The insurer would only consider additional cover on an ex gratis basis (i.e. not part of your contract and irrecoverable).

[Deleted User]

Do you have legal cover? If so you basically need to contact them for advice about recovering accommodation cost from your neighbors' insurance.

littlerock

It's not a cheap policy and as above, we have unlimited buildings cover. The policy is an historic one and fully insured up to limits of cover for alternative accommodation. We are renting a 2 bed flat. We own a 4 bed house bought many years ago and values have increased a lot locally since then. The flat rental  cost is much  less than renting similar house locally and insurers alt accommodation finder advised we were entitled to a house but we opted for cheaper flat in case there were delays.. !

Noone  expected it to take this long to start on next door  - we lost two months in planning approval delays for next door and now three more months  due to coronavirus lockdown.  But as we share  a party wall we cannot proceed ahead of next door.  Next doors insurers do not share information with us formally on grounds  of confidentiality. My insurers said  at outset it was usual practice for me to claim on my policy  and they would sue next door insurer to reclaim what they paid out so  I would not need to do so.

 I do have legal cover but it appears to focus on my public liability and legal rights as a homeowner, personal injury, identity theft, unfair dismissal. There is nothing which resembles suing for  uninsured losses in terms of alternative accommidation  in my situation. Maybe I should consult ombudsman?

Chickenlips

The ombudsman cannot change the terms of your policy. All of their findings on similar cases are published online for you to view. As I've said before, you are now relying on the good graces of your insurers to increase cover...... going to the FOS is not exactly working with them is it? 

Your insurers will have solicitors that they work with or the adjusters will do it but the recovery will begin when the claim is settled (have to know how much has been spent or they risk recovering too little). There will be a term in your cover that says your insurers can step in to your shoes and recover losses on your behalf. There is no guarantee it will be successful though. 

Cheap policies can have unlimited building sum insureds. The difference between a cheap, good, and great policy lies in the words and additional limits inside the document (such as alternative accommodation).

I would have allowed up to 2 years for your claim given that it hinges on other factors. I've had similar claims last up to 4 with a lot less damage. Fortunately,  the ground floor of the property remained habitable. 

Harsh as it sounds, your insurers have done nothing wrong here. They cannot change how long next door take. They cannot go back in time and suggest you take a different policy. They arent refusing you something youre entitled to under the terms. They are just declining something you are not entitled to. They have paid up to the limit. 

After 12 months, I would expect your house to be dry and water tight. I dont know enough about it but if your insurers believe it is dry, water tight, and has basic facilities they may suggest that you can live there. 

What works are outstanding at your home?