Sold property now insurance won't pay out.

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    Sold property now insurance won't pay out.

    Dear Forum,

    I recently sold my property that had substantial damage within caused by a combination of tenant damage and a boiler leak, which caused substantial damage to the property.

    I sold the house below its market value if the damage was not there, because I've been stuck in a situation where I can't rent rooms out within the property due to its condition and the insurance company who were made aware of the tenant damage in March 2020 and the Boiler leak in September 2020, have still not paid out.

    I had told my insurance company that I intended to sell the house as had no idea when / if my insurance was going to pay out, and could find myself stuck for another 18 months trying to recover my losses, whilst still paying out on a property that would generate no income.

    Whilst I have been advised that the tenant damage will be paid out, the boiler damage won't as they inform me that I've actually not had to pay out for the works to be done and as such not had any financial loss, regardless of the fact that the property sold for £360k when if it was un-damaged an estate agent believed it would sell for £400k +

    The endless delays and stress has been just as bad as trying to evict 2 violent tenants, but the actions of the loss adjusters seems to have been there Plan of Action throughout, delay - delay - delay, then advice that no loss so no claim.

    I have to already look at taking the first part of my claim to the Ombudsman as my insurance company believed that the damage at my property was due to wear and tear and as such I wasn't covered, or that I failed to inform them that the property was a HMO - (but was fully licensed 10 bedroom) or that the tenants were cultivating drugs (not the case) or any other endless false excuse to not make payment.

    I wish I had never had insurance with this company, as I've lost far more in rental losses due to not being able to rent out rooms whilst the property condition was getting worse as could never get any payments to rectify the issues.

    Below are some pictures of the damage but this is what is classed as wear and tear in the eyes of the loss adjuster and my insurance company. My furniture was smashed up and set alight in the front garden with the huge pile of damaged property available to view by the loss adjuster.

    Please make sure that you don't suffer like I have, not just the huge monetary losses, but the endless hours and stresses with providing so much information to the loss adjusters who will do all they can to continue your nightmare.

    #2
    sometimes it makes more sense to get your own contractor in to put things right vey quickly than hanf around waiting for the claims process. For that reason I only claim for catastrophe. I accept higher excesses which allows some premium leniency. It may pay to buy insurance through a broker because the broker can spmetimes help with the progress of a claim. They have contact with insurers that would not generally be available to the policyholder.

    Comment


      #3
      Originally posted by rugbyroom View Post
      Whilst I have been advised that the tenant damage will be paid out, the boiler damage won't as they inform me that I've actually not had to pay out for the works to be done and as such not had any financial loss, regardless of the fact that the property sold for £360k when if it was un-damaged an estate agent believed it would sell for £400k +
      I am not an expert on insurance law, but I do not think that that can be correct. Insurance is a contract for indemnity. You have clearly suffered a loss. In any event, if you had never sold the property and been paid there was no obligation to apply the funds to carrying out the repairs.

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        #4
        You say its a licensed 10 bed HMO

        You also say you didnt tell insurer it was a HMO

        Therefore, youre not due a penny as you didnt pay what would have been much higher premiums.
        My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

        Comment


          #5
          Thanks for your views, - I had informed my insurance company that it was a HMO, but the loss adjusters advised my insurance that my cover was not for a HMO, something that was completely un-true and obviously something that my insurance should have on their file.

          I'm just going through endless emails, but it was over 6 months before the loss adjusters advised me to seek quotes for the work that was required, and to date 9 months after my property was broken into by ex tenants, I haven't had a single update, but instead being passed around from different loss adjusters who take on my claim then proceed onto something else.

          Thank you lawcruncher, I was hoping to be paid out before the sale completed, but I simply can't get any payment and my brokers seems to be getting positive views from the insurance company, but then the loss adjusters simply put endless spanners in the works with so many false comments being made against me.

          Regards

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