insurance claims exccess

The tenant has used a dryer in the bathroom which they have brought themselves. The dryer caused leakage and damaged my flat and the flat below. 

As I understand the building insurance covers such an accident but the excess for making a claim is £5,000 five thousand pound. 

1) Wouldn't that be the tenant's fault for using a dryer that they brought themself which broke and caused damage to my flat? 

2) Can this £5,000 be waived, challenged, paid less, paid in installments, etc.....? 

3) If not, I do not have £5000, can I be sued for not having the money to complete the repairs? 

Any suggestion in this situation is highly appreciated. 


Comments

  • DullGreyGuy
    DullGreyGuy Posts: 9,014
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    1) If you can prove they reasonably will have known it was leaking and causing damage but continued to use it regardless.... normally that's a no

    2) No, you agree to the excess when you buy the policy, the premiums reflect the excess. If you want to pay less excess in the future you need to buy a policy with a smaller excess and pay the higher premiums. 

    3) It depends on how the claim is to be settled. Often the repairs will be estimated and a cheque for the repairs sent less the value of the excess. So no you cannot be sued but if there is £6,000 of damages you'll only have a cheque for £1,000 in which to repair the damages (or you choose to live with he damage and keep the £1k)
  • RezJila
    RezJila Posts: 11
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    1) If you can prove they reasonably will have known it was leaking and causing damage but continued to use it regardless.... normally that's a no

    2) No, you agree to the excess when you buy the policy, the premiums reflect the excess. If you want to pay less excess in the future you need to buy a policy with a smaller excess and pay the higher premiums. 

    3) It depends on how the claim is to be settled. Often the repairs will be estimated and a cheque for the repairs sent less the value of the excess. So no you cannot be sued but if there is £6,000 of damages you'll only have a cheque for £1,000 in which to repair the damages (or you choose to live with he damage and keep the £1k)
    The tenants are still living in the property - by sue I mean can they take me to the court as I do not have the money? 
  • DullGreyGuy
    DullGreyGuy Posts: 9,014
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    RezJila said:
    1) If you can prove they reasonably will have known it was leaking and causing damage but continued to use it regardless.... normally that's a no

    2) No, you agree to the excess when you buy the policy, the premiums reflect the excess. If you want to pay less excess in the future you need to buy a policy with a smaller excess and pay the higher premiums. 

    3) It depends on how the claim is to be settled. Often the repairs will be estimated and a cheque for the repairs sent less the value of the excess. So no you cannot be sued but if there is £6,000 of damages you'll only have a cheque for £1,000 in which to repair the damages (or you choose to live with he damage and keep the £1k)
    The tenants are still living in the property - by sue I mean can they take me to the court as I do not have the money? 
    There will be others here who know what a AST tenants rights are to repairs etc but you'd imagine it depends on the nature of the damage and how it impacts day to day living in the property.
  • pramsay13
    pramsay13 Posts: 1,919
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    A dryer doesn't normally have water, do you mean a washing machine?
    £5000 excess is crazy, did you go for a cheap insurance policy as it now seems to be coming back to bite you.
    How much is the damage to your flat worth, and the damage to the flat below?
    Normally the flat below would claim on their own policy.

  • eddddy
    eddddy Posts: 16,109
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    edited 24 November 2023 at 11:36AM
    pramsay13 said:

    £5000 excess is crazy, did you go for a cheap insurance policy as it now seems to be coming back to bite you.


    The OP says:

    RezJila said:

    ...damaged my flat and the flat below. 


    So being a block of flats, if it's in England/Wales, it's very likely that the freeholder arranges buildings insurance for the block.

    "Escape of water" excesses for flats are often set very high, because of the very high number of claims.


    It might even be that block has had multiple "escape of water" claims in the past, so the only way the freeholder could get cover at a reasonable price (or maybe at all) was with a high excess.



  • eddddy
    eddddy Posts: 16,109
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    Also worth mentioning (assuming it's a leasehold flat in England\Wales where the freeholder arranges insurance)...

    RezJila said:
    The dryer caused leakage and damaged my flat and the flat below. 

    As I understand the building insurance covers such an accident but the excess for making a claim is £5,000 five thousand pound. 


    The excess will be £5k per incident (not per flat). 

    So if the claim relates to damage to 2 flats - maybe you'd split the excess as £2.5k each... or maybe split it pro-rata, based on the amount of repairs to each flat.


    Also, leasehold tribunals sometimes rule that Freeholders must pay insurance excesses (from service charge funds) instead of the leaseholders. But you might have to get into heavyweight legal arguments, if you go down that route.




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