Water tank pipe burst and flooded house, now insurance company wont pay up, any advise...??

Question

My parents went on holiday for 3 months. A small copper pipe burst from the water tank in the loft after freezing during this time and flooded the house, disaster! My brother was in the house about 4 times over 3 months and had heating on during those days. There is a 60 day small print rule(parents didn't know about(can't be away for more than 60 days etc), doh!). My Brother was last in house on 58th day so could have happened on 59th or 60th day. The Insurance company said they would pay whole amount initailly. They got a company in to strip down the place, floorboards, ceiling etc.. and then dry it out..... After paying about 1/9 of costs insurance comapny changed their minds and pulled out and wont pay anymore stating the 60 rule... The company they got to dry place at start told parents to throw everything out, clothes, furniture, beds etc.. whether it was recoverable or not which they did. Now they have lost it all. Looking at about £20000 ++ to repair.

Answer 1

If it really is the case that the insurers initially said they'd pay out the claim then I hope you have this in writing or at the very least, I hope there is a recorded call somewhere. I would follow the complaints procedure of the insurers in question and write a letter of complaint disputing their decision to not pay after initially saying they would. Should the insurers own internal complaints process not satisfy you then you can still always write to FSA with your complaint. Always send any letters out recorded delivery.

Answer 2

I would advise that you seek legal advice from the citizens advice bureau,

If the insurance company as already agreed to do the work and you have already had a company in to start the work, then its sounds to me that the have accepted the claim.

But do seek legal advice please:

On any insurance claim the first thing some  insurance company's do is to find a loop hole to get out of paying out the costs.

Good luck,

Lets us know how you get on, its called pooling information, what you do may help others.

Answer 3

If your parents left the house for three months without turning off the water they didn't use the proper precautions to avoid the leak. The rules are different for an unoccupied house than for an occupied house--your parents had an obligation to protect their property by "winterizing"- clearing the pipes and turning the water off.  Furthermore, if the house was unoccupied for that long, they should have made provisions for proper coverage before they took their trip. Your parents are in the wrong. An insurer has the right to investigate and change their response depending upon the circumstances. Too bad. Your parents had a costly lesson.

Answer 4

an insurance company initially accepting the claim unfortunately means nothing.  all they time they investigate and stop claims that have been accepted , even suing to get money back after a claim has been fully settled.in some cases even legal proceeding for fraud.

i dont know what has been said at any interviews you may have had or written on any forms you may have but my advice would be to get down to c.a.b. and if that fails just tell them you or your brother spent several days here and there over the 3 months cleaning , checking things out etc and lie through your teeth. that way the 60 day unoccupied will be broken , just say you didn't realise at the time that it was the house being unoccupied not just your parents absence for 60 days  

best of luck anyway ..........insurence companies are ***'s

Answer 5

Not quite sure in your neck of the woods,but if they started it (assuming they had an adjuster come out )it would've already been approved?

Answer 6

The real answer to this is. Did your parents get advice from the person who arranged the policy? If they bought online or through a direct company then it was up to them to ensure that the policy met their requirements - including cover whilst being away more than 60 days.

If your parents requested advice and told the broker that they needed a policy to provide this cover then it was up to the broker to recommend a policy providing this cover. If they made a mistake your parents could claim from the broker for negligence.

If your parents requested advice and the broker did not ask whether the property would be unoccupied then life gets interesting. A broker has to make reasonable efforts to find out your parents requirements. Would this extend to asking whether the property will be unoccupied? Answer. I don't know - you may be able to get the FOS to adjudicate.

It all points to one thing. DONT BUY INSURANCE DIRECT! GET A BROKER TO DO IT FOR YOU,

Answer 7

The 60 day rule will probably stand unless you can prove that the house was occupied within that timescale - a visit - in and out may not count.

All insurance policies have this clause in them.

Sorry to be the bearer of bad news but this may not get paid - the only way you can possibly get around it is by CAB or legal means, IF you can prove that they initially said they would pay up.

Answer 8

Always read the small print.

An expensive lesson for your parents im afraid, they should have known better

Answer 9

First call is go to a solicitor and get them to look into the situation,

There is a law that says contracts have to be fair, so an insurance company cannot just use any excuse to get out of a payment, but the solicitor maybe able to tell you one way or the other.