Excess on insurance policy after water damage from apartment above

fififudge

Hi just wondering if anyone has ever had any communications issue with other property owners over damages.

Basically out apartment, which we own, was damaged due to water leaking from the upstairs apartment. They have taken full responsibility but do not own the apartment. Their apartment only has floor damage where as ours is floor, walls and kitchen units. We have been assessed and the amount adjusted by the insurance company but the excess on the policy is €7500. Which is a lot and normally the excess when two claiming is split by the claims. Say we claim €15k and they only claim €5k the excess would be split 75% and 25%.

However as it it not our fault should we be liable for the majority of the excess? The above owner is not communicating with us at all about the excess, we have tried on several occasions.

kieran.

I would have though the policy holder would be liable for for the full excess, you are a 3rd party claimant?

fififudge

Policy holder is the management company as it is block insurance so technically all the apartment owners are liable including our apartment and the upstairs apartment

TheShow

kieran. wrote: »

I would have though the policy holder would be liable for for the full excess, you are a 3rd party claimant?

Me too, as far as i'm aware the excess is only applicable to the policy holder. Your claim should be settled in full. But best to get it from the horses mouth, just to be sure.

TheShow

fififudge wrote: »

Policy holder is the management company as it is block insurance so technically all the apartment owners are liable including our apartment and the upstairs apartment

Can you talk to the appointed manager on the management company? They should be able to clarify your position.

Sue Pa Key Pa

The management company is the policyholder, but the apartment owners are members of the management company. Therefore they are not a 3rd party

fififudge

But the claim is in both properties name so I don't think we are classed as a 3rd party claimant as a result.

fififudge

The management company have said that they will split the excess on the recommendation of the assessor and the assessor has told us to contact the above owner to discuss this as he does not believe we pay the majority of the €7500

Paulw

The management company are the claimant. The unit owners are part of the management company.

In many similar situations, the owner of the unit which caused the damage would then pay the person damaged the excess difference. You shouldn't be out of pocket for the damage they caused.

But, you need to discuss that with the management agent, and with the unit owner above.

How the excess is split is not a fixed way. It is just decided on by the agent. You could nearly argue that you should be hit with the 25% excess, and the person who caused the fault hit with the 75% excess, irrespective of how the payment goes.

fififudge

Which is what we are attempting to do but the owner above does not want to communicate with us.

seamus

I'm not sure if the excess if any individual apartment owners' problem? The block is owned by the management company (hence the block policy), therefore the excess is payable by the management company as a whole and comes out of the management company's budget.

However, if the agreement is that the leaseholder pays the excess on any claims for their unit, then you will be stuck with the larger excess.

Water damage and fire damage claims do not flow back to the source of the damage. If a leak or a fire damages your apartment, you make a claim against your own policy. The "source" of the leak or fire is not liable for the damage to your apartment unless you can prove negligence on their behalf.

In this case, the same rule applies - the damage to each apartment is considered separately and the excess should be divided based on the amount claimed by each.

However, pushing the excess onto individual units sounds like absolute bullsh1t to me. The leaseholders are not claiming on the block policy, the management company is. So the management company is liable for the excess. Even if you refuse to pay the excess, the management company cannot refuse to proceed with the claim. It's damage to their block.

This is part of what the sinking fund is for.

Sue Pa Key Pa

I would fully agree with Seamus. The excess should be borne by the Management Company unless there is anything to the contrary in the rules and regulations that everyone agreed to. Don't be fobbed off by some committee member talking through his butt. The claim cheque will be made payable to them, net of the excess but the cost of repair is their responsibility

amtc

The apartment above me leaked into mine. I paid excess. Tried the above route but they wouldn't pay up! Didn't pursue it too much as insurance payout was double what expecting.

Paulw

Sue Pa Key Pa wrote: »

The excess should be borne by the Management Company unless there is anything to the contrary in the rules and regulations that everyone agreed to.

Many contracts state that the excess is the responsibility of the unit owner. So, the OP would need to check their contracts and see how it relates to insurance and claims.

The value of the excess changes from policy to policy, and can change year on year too. It can vary from €1,000 to €10,000 or even €15,000.

ted1

fififudge wrote: »

Hi just wondering if anyone has ever had any communications issue with other property owners over damages.

Basically out apartment, which we own, was damaged due to water leaking from the upstairs apartment. They have taken full responsibility but do not own the apartment. Their apartment only has floor damage where as ours is floor, walls and kitchen units. We have been assessed and the amount adjusted by the insurance company but the excess on the policy is €7500. Which is a lot and normally the excess when two claiming is split by the claims. Say we claim €15k and they only claim €5k the excess would be split 75% and 25%.

However as it it not our fault should we be liable for the majority of the excess? The above owner is not communicating with us at all about the excess, we have tried on several occasions.

Happened my friend and she claimed off the building insurance which is paid. The MC own the building.

jamesthepeach

While on an MC we used to get insurance claims, some like the ops. Other committee members used to fight paying the excesses like it was their money. I often had big rows with them over it.

Always though as soon as a solicifors letter arrived everyone would see sense and we would agree that the MC was responsible for the excesses and not the individual unit.

Take it to a solicitor if they won't play ball.
And you just ignore the person in the apartment above who won't speak to you. Not up to you to chase them.