Think the answer will be tough to this but will give it ago.

A few months ago we had a leak which flooded our neighbour.

They were already having work done and had a tradesman onsite.

She had people arriving the next day and needed the work done. I said she had to call her insurance company which would claim off of my company. Which was all fine but would take a few days and she didn't have the time.

The tradesman also would not do any of the works involved with the flood unless he was paid there and then.

I spoke to him and gave him a gaurantee of payment to finish the job for my neighbour ( I felt really bad about flooding her).

She contacted her insurance company and they say that since the work went ahead and they didn't see it, the claim was null and void.

We have the damage fully documented, the tradesmans statement and also my insurance company rep who came out to assess the damage to my flat.

I don't know the ins and outs of this but she isn't really claiming against her company but mine via her company.

Anyone got advice on how to proceed (ps she didn't know about the gaurantee I guarantee I gave the guy, although cash changed hands it was a deposit not payment for works)

If anything, no good neighbour in future, will just have to say sorry contact your insurance company

p.s. am 400 out of pocket as the builder was to give back the gaurantee on full payment

You will have to tell your neighbour to make a letter to you holding you liable for the damage and document why, and what work was needed. You should send that letter to your Insurance company.

I will tell you now they will decline the claim on the basis that you have accepted liability - however, a few complaint letters and threat of legal action should change their mind.

They should not decline on that basis, unless there is good evidence that you were in fact not liable. However, you really should have let the insurers deal with all of this as that is what you are paying them to do.

Your neighbour would need to argue that the repairs were urgent and necessary to minimise loss. Your own insurer may also offer to deal directly with your neighbour.

And in future, never pay a workman upfront.

Let's see if we can all help the original poster, eh?