Insurers refuse to cover our building

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Original Message Added : 5 Apr 2012

Hi

I am volunteer chairman of a large residents association for a residential block of apartments (212 units)

The development was built in 2006 and we have had ongoing problems in relation to water leaks. To cut a long story short our building insurers employed a building pathologist to investigate and establish the cause. The outcome is now a detailed report evidencing numerous examples of poor & defective workmanship carried out by the plumbing contractors at the time of installation. Too date the plumbing defects have resulted in claims to our insurers in the region of £200k to £300k for repair of damage to owners flats, communal areas etc.

This has now resulted in the nsurance company refusing to cover our building for water damage caused by plumbing leaks until all the issues have been resolved and the defects repaired. This in itself is a massive job which will cost thousands to rectify; we are a group of flat owners & volunteers and dont have the expertise or funds to rectify the poor workmanship, nor should we as the work was apparently poor in the first place. We have contacted the NHBC who say we are not covered for plumbing under their guarantee. Our insurers meanwhile appear to be pursuing the builders for recovery of the monies they have already paid out but dont seem to be preapred to take on the fight on our behalf to force the builders to rectify the poor workmanship they were responsible for.

I guess I have several questions I need a view on

1. are our current building insurers entitled to remove a critical area of cover out of the policy they provide?

2. Who's responsibility is it to legally pursue the builders to ensure they come back to our building and rectify the poor workmanship, if proved?

It seems our insurers have wiped their hands clean about rectifying the future problems and are only interested in recovery of their losses. I am not totally surpried by that but as a group of owners/volunteers we feel left high and dry, well not dry... by all concerned.

Any help or views much appreciated

Chris

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	Chris Foster from Kings Langley Management Company
Location :	Kings Langley
Joined :	05 April 2012
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Posts :	1 ( 0)

Reply : 5 Apr 2012

Hi Chris...I am no expert, but new build plumbing installations come under local authority building control and form part of their ongoing inspections as the building is constructed. Plumbing on this scale has to undergo rigorous pressure testing prior to local authority signing it off as habitable..fit for purpose and mortgagable. I think you may have some recourse to your local authority building control dept and proof that they carried out all necessary legal inspections.

This advice is given in good faith...I am not qualified in any way.

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	Andy Barnes from Andy's Private Hire
Location :	Southampton
Joined :	27 September 2010
About :	Airport Transfer Specialist
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Posts :	86 ( 44)

Reply : 26 Apr 2012

Your biggest problem as i see it, urgent ! urgent ! urgent !

Contact and invite tenders from property plumbing specialists (capable of handling such a large repair contract) British gas maybe.. 0800 009 4633

ask them for a site survey and to supply a fixed quotation to the insurance company's surveyors specifications and recommendations

with the repairs cost established find a specialist solicitor from http://www.lawsociety.org.uk/home.law

get proper legal advise, establish a plan

then call a residents meeting,

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	lightweight movers from Lightweight Movers
Location :	Gatwick
Joined :	28 October 2009
Contact :	Send Private Message
Posts :	497 ( 122)

Reply : 17 Jun 2012 - (Edited : 17 Jun 2012)

Try this lot - http://www.rplr.co.uk/ - We've only just heard of them and are just commencing 'due diligence' in terms of furture recommendations but if you want to talk to them on that basis please go ahead. I would be interested to know how it goes with the. Perhaps if this sorts out the main problem you would let us quote your freehold insurance and/or handle a mailer round your residents about our financial services?

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	Janet Hall from Janet Hall - The Mortgage Lady
Location :	Wallingford
Joined :	28 January 2010
About :	Mortgage and Insurance advisor based in Oxford
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Posts :	21 ( 4)

Reply : 18 Jun 2012

ChrisIn response to your questions:(i) Insurers generally can refuse to re-insure or place special terms on renewal. You might care to ask the broker for his advice assuming the policy was taken out through a broker. You might also be able to obtain an on-line policy at lower premiums but the issue for the insurer remains the risk posed by the defective plumbing. It looks a bit drastic if the insurer has modified the policy cover in mid-term. Who is the policy holder?(ii) A determining factor is who owns the defective plumbing. The Lease should give you the answer. If it is owned by the freeholder as poart of the defined communal areas, the residents should be able to seek recourse under their Leases for repair of the defects by the freeholder. The residents can do this individually or collectively (say through the residents association or through the management company). Normally on flatted leasehold developments there will be a management company which should come under the control of the leaseholders but usually not until all the flats have been sold. Some of the questions I would be asking are:1. can negligence and/or breach of contract be proved in relation to the defects with the plumbing? Your expert report should provide a lot of evidence.2. Does the party you propose to claim against have the money to make good the defects - this could be the freeholder (and in turn the freeholder against the developer) and/or the developer. Much depends on the legal structure of how things are set up.3. Ask NHBC whether they provided restricted cover and did not provide insurance on their standard policy terms. If they restricted cover, why dd they do so? The above is stated without prejudice or liability and is by no means intended to cover all the issues involved. Please ring me if you wish to discuss further 0845 649 9860 and look at our website www.rplr.co.uk Peter Moffatt Director RPLR

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	Peter Moffatt from RPLR
Location :	York
Joined :	18 June 2012
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Posts :	1 ( 1)

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