Home insurance and Council tax discount for empty uninhabitable period

jlbas

Hi 

We are now at the end of a 9 month period of being in alternative accommodation - paid for by the insurer - while we got our downstairs completely refurbished due to a flood flash while we were on holiday, which swept 12 inches of rain water through the downstairs. 

We are now back at home, and all has been settled on, except for Council Tax bills - 

We live in a village, where we wanted to stay (rather than neighbouring towns with more rental properties) so moved into a bigger place, with higher council tax - but lower rent than other places, because it had been empty for a long period, and carpets and decor were a terrible state - so rental was cheap, even though council tax was more. 


We have paid DD for both places on council tax residences while being flooded - which was 50% for our home as we got '50% discount for empty uninhabitable period'  (100% for the first month) - and then also paid the full amount on our rented property. 

The query is - the insurers want to take the 50% discount off us - so that we pay the council tax at the usual rate of living at home - so they will reimburse for the rented accommodation council tax less the discount awarded for 'flood support' (so we were informed over the phone by the council) 

For example - (all figures are an example)

My home CT for the year usual - £500
Less 50% for being flooded out  (£250)

CT owed on flooded home         £250 - paid by us DD over the last year


Rented property CT for the period of residence                   £800 - we have also paid this over the last year by DD
Less 50% for being flooded out of home                             (£250) 
Less balance to take us back to what we normally pay -     (£50)

Balance insurance company have agreed to pay                £500  - what the insurance company have agreed to pay - ie: our usual council tax bill 



I find this outrageous - that exemption of taxes given to a residence to offset some of the costs of being flooded - is to be taken by the insurance company - and wondered if anyone had any advice on this matter, before I start fighting it. 

Apologies for the long-winded email, and thankyou so much for any advice which can be given, 


Best Regards


Jo 

 

ILoveSittingDown

The insurance company’s remit is to return you to the state you were in before you had the flood. If without the flood you would have paid £500 council tax then they will pay for any extra council tax above this amount as a result of staying in alternative accommodation. They aren’t going to reimburse council tax that you haven’t paid

jlbas

Hi 

Thanks for your reply - just to clarify - I am not asking for the insurance company to pay council tax monies which we have not paid - 


the council tax we paid on our flooded property was £500 - normally it would be £1000 as we had a 50% discount due to an uninhabitable property. Meanwhile we paid 100% council tax on our rental property at £1200 - the insurance company want to pay us £1200 for rental property LESS  the £500 discount given for the flooded property - so we pay 100% council tax on our flooded property - the insurance company take the 50% discount. 

In which case, we have been given a discount from paying tax which comes out directly from the government purse - which the insurance company are taking.

If the 50% discount had not been given by the council, the insurance company would be paying the full 100% council tax on our rented property. Just wondering whether to fight for us to retain the 50% discount, so all we are paying is council tax charged on our flooded property @ £500. The insurance company pays the full council tax on the rental property. 

Hope that makes sense, 

Thanks for any input, 

Jo 

ILoveSittingDown

If you hadn’t had a flood then you would have paid £1000 council tax for the year.

As you have had a flood and your property is uninhabitable then you have been given a 50% discount, and you’re paying £1200 in your alternative accommodation. 

What you would have paid without flood: £1000
What you’ve actually paid: £1700

The insurer will reimburse the difference: £700

You could argue the toss if you want but I don’t think you’ll get anywhere.

Also I’m really sorry that you have had a flood. My house has flooded twice and it’s absolutely heartbreaking

jlbas

Hi ILoveSittingDown 

Thankyou so much! Yes it's certainly been a hard year - and sorry to hear you know how it is from personal experience too. 

This is the only element left, and I can't quite seem to put the idea down that the insurance company is taking taxpayers money but hey ho! 

Thankyou so much - I was worried that we were the only ones being done over by our truly horrible underwriters - you have put my mind at rest. 

Hope you are recovering from it all, and once again, thankyou so much for your help - it is much appreciated, 


Jo