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Buildings Insurance Fraud 'crash for cash'

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  • Buildings Insurance Fraud 'crash for cash'

    Our joint buildings insurers have allowed what is clearly an invalid and fraudulent claim on our joint buildings insurance policy, for an exorbitant amount. Do I have a claim against them for breach of duty of care?

    The owner of the flat above mine have allowed 4 escapes of water from their flat into mine. On the 4th occasion they submitted a claim on our joint insurance buildings policy without telling me.

    I was required to sign an agreement to their claim which I declined to do without being informed of the amount. Eventually, 6 months later the loss adjuster provided a copy of the approved quote which was for £4000+.

    As a building professional I have designed and installed new bathrooms for less than this. I had the works in the quote costed by a Building Estimator at £425.

    Eventually under their lease I was able to inspect what they were claiming for, and the only damage was cosmetic, to the plasterboard below the bath, concealed behind the bath panel.

    The claimants employed a solicitor who threatened me with court action if I did not sign, within 7 days, what I believe to be a clearly invalid and fraudulent claim. After 6 months they withdrew this threat after they were unwilling to reply to questions I asked about their claim.

    The insurers disclosed that the claimant failed to declare the previous escapes of water, but seem intent on allowing the claim, which would increase the renewal premiums, and affect my 22 year claim free record, and I would effectively be financing my neighbour’s new bathroom suite. My objections to the insurers about the claim, when it was first submitted, were overturned by them.

    This is the equivalent to allowing a ‘cash for crash’ claim and has dragged on for 2 years now, with harassment from the young lady in the flat above which has required police intervention.

    With the lack of evidence of £4000 worth of damage do I have a claim against the insurers for breach of duty of care, for the stress, waste of time and harassment in what is clearly an invalid and fraudulent claim.

    Many thanks.
    Tags: None

  • #2
    Re: Buildings Insurance Fraud 'crash for cash'

    Why did they claim against your insurance? Surely if the flat is above yours it should be you claiming from their insurers?

    If you suspect a fraudulent claim then I would report it to the insurer and allow them to investigate.
    Any opinions I give are my own. Any advice I give is without liability. If you are unsure, please seek qualified legal advice.

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    • #3
      Re: Buildings Insurance Fraud 'crash for cash'

      It depends on the set up of the flats, as to wither you can insure one flat or both, usualy, the one who owns the ground, has to insure the full property and claim premiums from the above flat.

      Also, I dont think you can object against what they paid him, as although you may be responsible for the insurance premiums, the claim is his responsibility. Finally, it would be the insurances claims management company dealing with it and making the agreements. .

      It may be worth asking the insurance co, if, upon agreement of settlement, they insisted the work was done to prevent any damage to yours, or what provisions were agreed to protect your property.
      crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

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      • #4
        Re: Buildings Insurance Fraud 'crash for cash'

        Originally posted by Tools View Post
        Why did they claim against your insurance? Surely if the flat is above yours it should be you claiming from their insurers?

        If you suspect a fraudulent claim then I would report it to the insurer and allow them to investigate.
        Thanks for the reply.

        The insurance is a joint buildings policy for the 2 flats, we had subsidence in the past so a joint policy seemed a good idea at the time, then upstairs changed ownership.

        I have absolutely no doubt it is a fraudulent claim, but the insurers are not interested. I even made a formal complaint.

        The amount, £4000, is too small for them to be concerned about. They are happier to agree the claim and increase the renewal premium, which just means that I will be paying for the £4000 upstairs have to spend on their bathroom.

        It is the same attitude they had to all these 'Crash for Cash' claims until the Government told them to clean up their act.

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        • #5
          Re: Buildings Insurance Fraud 'crash for cash'

          hi

          i asked a landlord i know about his experience with this ( similar curcs but a bit worse ), he suggested to ask the claims management company what contract were agreed with the owner of the above property, in relation to work carried out between the floors.

          He said, he had similar problem, The claims management company were required to ensure the work was done to a suitable level. He pursued them ( CMC ), requesting picture of the work done under the floor

          The outcome, after a lot of paperwork exchange, was the CMC came back and installed a proper membrane between the 2 properties were the water lines were, and adjusted the drain runs.

          hope thats helpfull
          crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

          Comment


          • #6
            Re: Buildings Insurance Fraud 'crash for cash'

            I suspect trying to pull the insurance company up on this like kicking a mountain....When I had my shop on several occasions the upstairs tenants allowed water to flow in with serious consequences to my business, the insurance company was indifferent and I was left to scrape back my losses as best I could, a long protracted, premium stretching affair...

            Comment

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