Hello, apologies if this has been covered before but I am grateful for any help.

My insurers have agreed to pay out £2000 for redecorating, loss of rent etc due to water damage to the flat downstairs based on information provided by the owner.

Despite the fact that we have never denied the damage which was an unfortunate accident, the owner of the flat downstairs have been unco-operative and excessively litigious about everything. Despite the fact that our insurance company has agreed to pay for everything we still have the threat of court action over our heads.

We have now only recently discovered that there is a possiblity that they are making a fraudulent/ exaggerated claim - the builders who provided the estimates don't seem to exist, their mates have done the redecorating etc,.... ok from what I understand of the law, not a problem if the insurers have agreed to pay x amount for the works and they submit an invoice for around that amount that the insurers are prepared to pay but

(1) should I notify the insurers of my concerns

(2) if the insurers refuse to pay out due to what they think is a fraudulent claim do they have a valid claim directly against us? we paid for protection to pay for such an unfortunate situation, we had no involvement with the estimates or redecorating, the insurance co confirmed that the work should go ahead based on the estimates provided by downstairs, it would be soley the actions of downstairs that could negate the payment.. fairness would suggest no and I also don't like being complicit in such shoddy behaviour however the law may be different - grateful for anyone's thoughts

Hi,

did your insurers send a loss adjuster to inspect the damage to the down stairs flat? If so (and i'm sure they did), who did they deal with afterwards in respect of arranging the repairs... you or your downstairs 'neighbour?'

And why have you got the 'threat of court action over your heads'... can you expand on that?

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thanks

yes, the loss adjuster visited the flat downstairs and based his recommendations on the estimates provided by them, they then got on with it. He sent the solicitors letter after the damage occurred.

OK first off stop worrying.

Your insurers are dealing with this, if your neighbour sues you pass that onto your insurers, they are granting you indemnity, they are dealing with the claim, if it goes to Court they will go on your behalf and they will pay anything that is awarded by the Court.

If the damage has been inspected and costs agreed then your neighbour is quite at liberty to get the repairs done by whoever he wants to do them. He sounds a bit of a 'wide boy' to me, so he has possibly arranged two quotes from high price tradesmen and then arranged for a cheaper person to do the work and at the same time sneaked in some extra work, as long as the costs do not rise above that which was agreed then your insurer will pay out.

I'm at a loss as to why your solicitor is holding a payment already made to your neighbour in respect of loss of rent, normally money would be sent direct to the third party (your neighbour). Can you explain that a bit more fully, and also let us know why your solicitor is involved in this at all, if your insurers are dealing with it then I can't see what involvement your solicitor should have in it.

Finally, no if your insurers deem part of your neighbours claim as fraudulent then your neighbour cannot sue you, well actually yes he can, but your insurers would deal with it on your behalf and would probably go to Court and defend it on the basis it is fraudulent.

My advice to you is to withdraw personally from this, your insurers are dealing with it, let them get on with it, pass all correspondence to them and tell your neighbour to deal directly with them.

Mossy

Thanks Mossy. Its all got horribly messy and I concerned that he is going to try and intimidate us for more money. Despite having our insurance details we were surprised to receive a letter before action threatening all sorts of things. We had no choice but to get some legal advice although its not been worth the money.

Thanks Mossy. Its all got horribly messy and I concerned that he is going to try and intimidate us for more money. Despite having our insurance details we were surprised to receive a letter before action threatening all sorts of things. We had no choice but to get some legal advice although its not been worth the money.

OK don't be intimidated, your insurers have granted you indemnity they will deal with whatever the neighbour throws at you or tries to get you to pay.

Don't be worried that letters (LBA etc) or even a County Court summons are addressed to you, they have to be, however you simply pass anything and everything on to your insurers. I'd also be tempted to explain all your concerns regarding what your neighbour is trying to do (extra work wise) to your insurers and let them investigate it if they want to.

Having your own solicitor involved is a waste of time and money, he isn't defending you (your insurers are), and if it does go legal your insurers will have their own solicitors who they will instruct as and when required. Furthermore by holding on to the cheque intended for the TP (ie your neighbour), your solicitor is only adding another layer of complication and possibly leaving you open to a claim for loss of interest on money due.

Just out of curiousity, how did your solicitor get his hands on the cheque intended for the neighbour, I would have thought that your insurers would have sent the cheque direct to your neighbour (and made it payable to them).

Above all else, stop worrying about what your neighbour can/will/might do, whatever he does your insurers are there to deal with it.

Mossy

thanks

 

yes, the loss adjuster visited the flat downstairs and based his recommendations on the estimates provided by them, they then got on with it. He sent the solicitors letter after the damage occurred.

Thats it then, job done as far as you are concerned. as Mossy says, once the insurers have agreed the repairs it is out of your hands. Pass any communication what so ever to your insurers. If you get any verbal communication about this, just refer them to the insurance co. I'm sure that if your neighbour tries to pull a fast one, the insurance co will realize... they are used to it!

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