Shared Water supply pipe leak insurance refuses to cover costs after digging and leaving a hole

Gecco

Essex and Suffolk Water

Advised us of a Leak on the shared water supply pipe going across 8 neighbours drives (We are 2nd House in Line) 

House 1 had their insurance company come out and look for leaks
Their contractors found no leaks but traced it onto our drive and advised us to contact our insurance. 

We did and the next day the same contractor came out - traced it to our stopcock on our drive and said they could repair it there and then and backfill the hole - I AGREED TO THIS VERBALLY

After digging they actually found the leak to be past our stopcock and on the pipe feeding the rest of the neighbours (Houses 3 to 8) 
They didn't have a big enough pipe to replace it but ensured me they would be back asap and most likely the same day as its classed as an emergency due to the pipe constantly leaking - they just put a cover over the hole they made.

They haven't returned and a week later I received an email from the insurance company stating the contractor hasn't found any evidence of accidental damage and the pipe is in poor condition thus won't cover the repair costs but I can privately pay the contractor £1300 to have the pipe fixed. The contractors  haven't even mentioned that the leak is not even on our pipe. 

I have been left with an open hole on my drive 1m by 0.5m with water constantly leaking.

This cannot be right that they started digging without first getting approval from the insurance company to cover costs etc. We called Essex and Suffolk water who are not interested as its on private land. 

If it wasn't for the contractor telling us we have a leak on our stopcock I would have never let them dig up our drive in the first place

Where do I stand on this legally ? And we don't know what to do about the hole left on our drive with the water constantly leaking...

MattMattMattUK

Gecco said:

Essex and Suffolk Water

Advised us of a Leak on the shared water supply pipe going across 8 neighbours drives (We are 2nd House in Line) 

House 1 had their insurance company come out and look for leaks
Their contractors found no leaks but traced it onto our drive and advised us to contact our insurance. 

We did and the next day the same contractor came out - traced it to our stopcock on our drive and said they could repair it there and then and backfill the hole - I AGREED TO THIS VERBALLY

After digging they actually found the leak to be past our stopcock and on the pipe feeding the rest of the neighbours (Houses 3 to 8) 
They didn't have a big enough pipe to replace it but ensured me they would be back asap and most likely the same day as its classed as an emergency due to the pipe constantly leaking - they just put a cover over the hole they made.

They haven't returned and a week later I received an email from the insurance company stating the contractor hasn't found any evidence of accidental damage and the pipe is in poor condition thus won't cover the repair costs but I can privately pay the contractor £1300 to have the pipe fixed. The contractors  haven't even mentioned that the leak is not even on our pipe. 

I have been left with an open hole on my drive 1m by 0.5m with water constantly leaking.

I am not sure on the intricacies but it would be good to clarify a few bits.
Who owns the pipe that is leaking?
Is the section of pipe that is leaking on your land?
Is the supply metered and if it is, is it metered for all houses jointly, or individually?

You need to check, but you may well have an obligation to fix any leak and only approved contractors can work on mains water supplies.

Gecco said:

This cannot be right that they started digging without first getting approval from the insurance company to cover costs etc. We called Essex and Suffolk water who are not interested as its on private land. 

If it wasn't for the contractor telling us we have a leak on our stopcock I would have never let them dig up our drive in the first place

It might be right, it might not be right, it depends on what was said and agreed, who is liable and what the legal obligations to have the leak fixed are. You might be required to fix the supply regardless and if it is just wear and tear/deterioration over time then you would not be covered by your house insurance. 

Gecco said:

Where do I stand on this legally ? And we don't know what to do about the hole left on our drive with the water constantly leaking...

Where you stand legally is potentially complicated. I suspect what you do about the hole is that you have the pipe fixed and the hole refilled and that money is either your cost, or a cost split between the eight houses, which will depend on the legal status of the pipe and how that is accounted for, potentially in the deeds of the properties. 

DullGreyGuy

You need to check the terms of your policy.

Most policies cover the result damage from a water leak from fixed water systems but not the cause of the leak itself under the Escape of Water section. The cause of the leak itself may be covered under the AD section if its clear that accidental damage is the cause (eg you put a nail through a pipe in the wall) however general wear & tear, design flaw etc are not insured perils and so you are liable for fixing the plumbing and the insurer covers the water damage repairs, if you have Trace & Access they'll cover the cost of the damage done to fix the pipe too but if not then thats your own cost to cover as well. 

Its not abundantly clear from your description who's pipe it is and who's responsibility it is to fix it.  Just because its on your land doesnt mean its your responsibility. 

Gecco

MattMattMattUK said:

I am not sure on the intricacies but it would be good to clarify a few bits.
Who owns the pipe that is leaking?
Is the section of pipe that is leaking on your land?
Is the supply metered and if it is, is it metered for all houses jointly, or individually?

The leaking Pipe  supplies properties 3 to 8 and is owned by them. 
It is however on my land
The supply is metered for all houses at property 1

MattMattMattUK

Gecco said:

MattMattMattUK said:

I am not sure on the intricacies but it would be good to clarify a few bits.
Who owns the pipe that is leaking?
Is the section of pipe that is leaking on your land?
Is the supply metered and if it is, is it metered for all houses jointly, or individually?

The leaking Pipe  supplies properties 3 to 8 and is owned by them. 
It is however on my land
The supply is metered for all houses at property 1

To be clear, you say it is metered for all houses at property 1, is there one meter or eight meters?

If the pipe supplies all of you with junctions to each house I suspect the pipe is actually jointly owned by all of you. If there are eight individual pipes with individual meters at the point of origin then they might well be owned individually, but with a right of access, you will need to check your deeds and any additions to them relating to the water supply. 

Gecco

one communal meter for all 8 properties - that's how they (Essex and Suffolk water) originally found out there is a leak on the supply pipe and instructed the individual properties to carry out their repairs/leak detections.

Essex and Suffolk water already confirmed the supply pipe on our drive is after its T eed off into our property so NOT our responsibility. 

My issue is with the company that was instructed by our home insurance to do the leak detection.
They showed up, stated it was the stopcock on  our drive and stated they could repair it there and then. 
After digging it turned out that the stopcock was fine and they left us with a leaking pipe and hole on our drive and a week later finally issued a bill!

Without any written consent to dig or a price agreed / or agreed by the home insurance.- they were initially only sent out to do a leak detection and NOT to start digging!

Gecco

Update on the case:

Finally had a response from the insurance company confirming the initial contractors were only sent out to locate and assess and not start digging. 

Confirmed that the leak is on the supply pipe responsible by our neighbours and not us. 

Told us to arrange repairs and claim the money from our neighbours and offered to come and backfill the hole once we arranged our own repairs. 

they basically said ooopsy our fault but we still wont fix it and pay for it. 

I have since taken quotes from various companies to replace the whole pipe and not just the damaged section and the best quote was only £200 more than it would have cost to only replace the damaged section!

having the whole waterpipe to our house replaced next week at our cost.

IMO the Contractor the insurance company sent out to only asses should cover some of these costs