Is it my responsibility to pay someone else's Insurance Excess

[joshdhaliwal]

Hi I need some advice.

A leasehold flat I rent out in England recently suffered a water leak due to a problem with the toilet cistern which has now been fixed.

I received a letter today through the management company for the whole building that the flat below had water damage to their ceiling and lights as a result of the leak in my flat and the leaseholders of that flat are seeking to claim their insurance excess of £500 to be covered by me.

I don't have a problem with paying but just wanted to check that it is my responsibility and that I am legally obliged to pay their excess?

Thanks and I look forward to some guidance.

[quarterday]

interesting question. It is the policy in some very large and prestigious blocks to pay the excess out of the service charge contribution but it is as broad as it is long as in that circumstance you will have the pleasure of paying other people's excesses.

Personally, in the interest of getting things done I favour the service charge paying the uninsured excess; but it does penalise those who are ultra careful and favours those who are not necessarily quite so diligent. You might ask your freeholder if he will try to obtain cover with a lower policy excess.

[jeffrey]

Is there a lessee's covenant (in the lease of the flat from which the leak originated) to pay any irrecoverable excess?

[Gordon999]

If you were the victim flat owner of damage caused by a leak from the flat above yours , wouldn't you seek re-imbursement of insurance policy excess from the above flat owner ? .

[jeffrey]

Originally Posted by Gordon999

If you were the victim flat owner of damage caused by a leak from the flat above yours , wouldn't you seek re-imbursement of insurance policy excess from the above flat owner ? .

Yes; although remember that some policies allow the policyholder to pay an increased premium and delete the excess.

[Telometer]

Originally Posted by jeffrey

Yes; although remember that some policies allow the policyholder to pay an increased premium and delete the excess.

There is no compulsion to insure at all. If completely uninsured then they would be claiming from you - or your insurance policy.

It surprises me that their ins co has not been claiming against your ins co- which would leave you with your excess to pay instead (they would get your ins co to pay their excess).

[Always Problems]

Refer the claim to your own insurance company.

[ram]

Originally Posted by joshdhaliwal

just wanted to check that it is my responsibility and that I am legally obliged to pay their excess?

Morally.

if I was sat minding my own business, and through no fault of my own, I am given a bill for insurance excess which was incured by someone damaging my ceiling and lights, why should I pay for something that was not my fault. Why should I have to take out £500 out of my bank to pay for something that was not my fault.

Of course I want the £ 500 excess paid for by the perpetrator, either by their isurance or out of their own pocket. Most insurance companies have an excess clause, and in the last 2 years, we have had 3 damaged ceilings by 2 leaks from the same flat, and another by a different flat, which is why they have clauses for excess, as the older rented out flats can be notorious for leaks.

however, a £500 excess does seem large, but the damaged ceiling did have insurance cover, so be thankful you did not have to pay out of your own pocket for the full cost of repair for both properties.

Excess primiums keep the cost of insurance down for the humble average / below average earner home owner / tenant.

[quarterday]

moral of story

buy a house (or penthouse)

regardless of the money, leaks from above are a fact of life in flats!

[jeffrey]

Originally Posted by quarterday

moral of story

buy a house (or penthouse)

regardless of the money, leaks from above are a fact of life in flats!

Fault in your moral: both houses and top-floor flats ('penthouses') can suffer from leaking roofs.