Letter of claim before taking to court

pandapop88

Hello,

We’ve had an awful time renting out our house that we used to live in. The tenants have caused £8000+ worth of damage and aren’t going to pay. We need to send a letter of claim before contacting our insurance company with the hope of them financially supporting a case in the small claims court (not that they’ll be able to pay ).

In the letter of claim, apart from including the quotes/invoices for the damage, do I include loss of rent and things like that too? Also, as the tenants won’t actually be paying, does it matter if the quotes are different to what we actually get done - example: they’ve ruined the woodwork on the skirting boards, we’ve been quoted at how much this will cost to fix but we’re not going to get this done because we can’t afford it and the bigger damages need sorting.

Thank you for any insight.

user1977

If you're not expecting them to be able to pay, what's the purpose of the claim? 

pandapop88

user1977 said:

If you're not expecting them to be able to pay, what's the purpose of the claim? 

I could be wrong, they might find the money. They will have some implications for the pain and stressed they have caused. 

eddddy

user1977 said:

If you're not expecting them to be able to pay, what's the purpose of the claim? 

I think some landlords see it as a 'moral duty' to get CCJs against non-paying tenants, so that future landlords doing credit checks are forewarned. But I don't know if that's the OP's thinking.



@pandapop88 - What financial support are you hoping for from your insurer? You're not usually expected to need a solicitor for a claim in the small claims court.  I think the court fees might be about £500. Is there an excess on your policy, and will a claim increase future premiums?

(And are you expecting the tenants to vigorously defend the claim?)

user1977

I doubt insurers will help unless there seem good prospects of recovery. 

saajan_12

pandapop88 said:

Hello,

We’ve had an awful time renting out our house that we used to live in. The tenants have caused £8000+ worth of damage and aren’t going to pay.- that's quite a lot, what sort of damage? Is it damage beyond normal wear and tear? What circumstances did they leave under?
We need to send a letter of claim before contacting our insurance company with the hope of them financially supporting a case in the small claims court (not that they’ll be able to pay ). - What sort of insurance and how would they support? The court fee itself would be relatively small and you don't need solicitors, so probably can proceed without. Insurers usually come in if you are covered for the actual damages. 

In the letter of claim, apart from including the quotes/invoices for the damage, do I include loss of rent and things like that too? - you can put in anything that's a direct loss as a result of their damage beyond W&T. Whether you get it depends on your proof and the judge. For the damage, you also need evidence of the damage eg pictures / inventory,  not just the quote to fix. 
Also, as the tenants won’t actually be paying, does it matter if the quotes are different to what we actually get done - example: they’ve ruined the woodwork on the skirting boards, we’ve been quoted at how much this will cost to fix but we’re not going to get this done because we can’t afford it and the bigger damages need sorting. - recovery is a separate question. At the stage of making the claim, it needs to reflect valid and mitigated losses, though doesn't matter if you actually do the work or live with an inferior property. So the lower of the cost to fix and the value of the item, depreciated for the use you had of the item.  

Thank you for any insight.

Comments in line.. if you want to elaborate on the issues, maybe we can advise further. 
Generally, I'd focus on gathering evidence of the damage and mitigated costs to remediate it, to prepare a LBA and ultimately court claim. 

steampowered

You should contact your insurance company BEFORE issuing a claim.

Your insurer is not going to pay for legal proceedings that they aren't handling. It is a typical requirement of any insurance policy that the insurer decides how the claim gets dealt with.

If the insurer is willing to cover the litigation they would probably want their solicitors to handle the claim; the insurer is not going to be willing to carry the baby if you stuff up legal proceedings and have costs awarded against you for any reason. 

pandapop88

steampowered said:

You should contact your insurance company BEFORE issuing a claim.

Your insurer is not going to pay for legal proceedings that they aren't handling. It is a typical requirement of any insurance policy that the insurer decides how the claim gets dealt with.

If the insurer is willing to cover the litigation they would probably want their solicitors to handle the claim; the insurer is not going to be willing to carry the baby if you stuff up legal proceedings and have costs awarded against you for any reason. 

Thank you, I have and they said I need to send a letter of claim before they start the processes from their side. 

GDB2222

You can claim for any unpaid rent. You can claim for the cost of rectifying all the damage, whether or not you get all of it repaired at once.

 You don’t need to claim for everything. You may choose to issue proceedings for less, so as to keep the court costs down. 

Beware of the no win no fee solicitors. They may win the case and you become liable for their fee, even though you recover nothing from the tenants. About half of ccjs are never paid.  

You don’t need a solicitor at all, anyway.

Bendy_House

pandapop88 said:

Thank you, I have and they said I need to send a letter of claim before they start the processes from their side. 

Your insurance co. should really guide you with this letter too - really pants that they haven't offered.

AfaIk, for 'property damage', you should try and get three quotes for the making good, so as to demonstrate that you are being uber-reasonable and not out to exploit the situation. If your Legal Protection hasn't even suggested that, then I think you should be calling them up for more guidance.

You will probably also have to give the recipient a fixed date by which to respond, so it doesn't just drag on. When they don't respond, or do so 'negatively...', then your LP should take up the case (assuming they are confident of a win).

If they don't help you with the wording of this 'letter before claim', then perhaps you can find templates online, or CAB might assist (try their website).

Can I ask which insurance company you are with? Assuming it must be 'Landlords' insurance, then such assistance is commonly included - I think...

canaldumidi

What kind of insurance is this? Buildings policy ie claims for damage to property? Landlord's? eg including 'malicious damage by tenants'?

Depending on the type of insurance, and the extent of the specific policy, the insurer might or might not take this on either from the start or after your letter - don't just take their word though. Read your policy!

pandapop88 said:

....The tenants have caused £8000+ worth of damage and aren’t going to pay.

Still worth taking action as a) they might pay (or part pay) any court judgement you get and/or b) if they don't pay they'll get a CCJ recorded, which will c) cause them difficulties and d) protect future LLs

We need to send a letter of claim Letter Before Action before contacting our insurance company with the hope of them financially supporting a case in the small claims court (not that they’ll be able to pay ).

No solicitor in small claims court though insurer might help you with the LBA and the claim forms.

Claims usually go via the Small Claims Track if the case is likely to last no more than a day and be for £10K or less.

In the letter of claim, apart from including the quotes/invoices for the damage, do I include loss of rent and things like that too? 

You can. You may or may not be awarded them.

Also, as the tenants won’t actually be paying, does it matter if the quotes are different to what we actually get done - example: they’ve ruined the woodwork on the skirting boards, we’ve been quoted at how much this will cost to fix but we’re not going to get this done because we can’t afford it and the bigger damages need sorting.

There is no requirement to do any of the work. You are claiming for the damage, not the repair. You could drink yourself silly with the money and accept that your property is now worth less than it would have been if undamaged.

But you must itemise each area of damage, with reasonable claims for the repair cost, ideally supported by 1 or more reputable quotes (eg use a member of the Federation of Master Builders or similar, not an odd-job man!), backed up by photos of before and after. You should also reduce the amount of the claim to allow for 'fair wear and tear/betterment'.

Hopefully you have an address for the tenants?