Residential Property Owner: Flat Owners Insurance
Background
Our client submitted a claim for extensive rot in an upmarket block of flats in London. The roof timbers of the top floor flat had been very badly affected by the rot and needed completely replacing.
Problem
The claim was investigated by loss adjusters appointed by the insurers, who concluded that the cause was “gradually operating” over an extended period and thus excluded from the policy. They also argued that rot was specifically excluded in the policy anyway.
What we did
We challenged this and argued that there was clear evidence that at least some of the damage had been caused by an escape of water from a blocked roof gutter. This had been damaged, allowing water in which caused internal damage. We also pointed out that the risk had been with the same insurer for several years, so even if the damage had been caused over a period of time, it was still while they were on risk for the cover.
Outcome
After referring the claim to their technical committee, the insurer relented and agreed to pay half the repair costs. Our client was delighted with this proposal. We also argued that the insurer should be paying a contribution towards professional fees and for loss of rent. The insurer agreed to this.
The insurer’s initial offer on this claim was nothing but after Centor’s intervention, an offer of £42,000 was made which was very acceptable to our client who commented:
“Wonderful. The lessees are delighted with what you have got for them, really, really appreciated. A big thank you!”