Wear and Tear Vs Accidental Damage
Insurance companies are arguing the fine print and refusing to pay out. So what happens if your water pipe starts leaking?
We recently discussed how insurance companies would not be paying out for what they classed as 'wear and tear' on your property.
Since then it seems that this has become a hot topic, with Joe Crowley dedicating some of his Inside Out South air time to a 'local hero' battling to help people with their insurance claims.
An interesting article, written by Joe Crowley, talks about who is actually responsible for a leaky water pipe and whether or not home insurance covers it.
If there is a leaky pipe under a property then 9 times out of 10, the property owner is responsible for its maintenance and not the water company. However many people have insurance to cover them for circumstances exactly like this, only to discover that the fine print has other ideas.
Some insurance companies have been fair and paid out, but it seems that the Halifax, for one, has not lived up to its nice and smiley image.
Insurance companies have basically decided to change tighten up what they pay out on and are classing water leaks as 'wear and tear', which you are not covered for. Many of them never even visit the address; they just arrive at this conclusion and leave you in, well, 'deep water'.
If you decide to argue with your insurance company, stating that the damage is in fact accidental, you are likely to have to prove it. Something that is essentially not easy to do without you digging up your house and obviously this will all be at your cost.
There are some things that you can do though, to make sure that you are getting heard by your insurance company and your claim not instantly being dismissed.
Has your insurance claims been rejected?
It is quite frequent that insurance companies reject initial claims. Just take a look at some of our Case Studies. If your insurance company says that the damage has been caused by 'wear and tear' the majority of people would walk away, but just because your insurance company claim that the damage is 'wear and tear' doesn't mean that it actually is. Challenge them, putting your case forward. They want to put you off, so don't let them.
Accidental Damage Vs Wear and Tear
What does your fine print say? The Halifax, as mentioned, explains accidental damage as "damage which has not been caused on purpose, or which was not inevitable". Joe Crowley interestingly argues the case, debating whether it was in fact inevitable that your pipe would leak.
Water pipes made of plastic are built to last, so unless you have gone out of your way to put a giant hole in it, then you should have a pretty strong case.
Argue your corner
If the insurance company have said that the damage is wear and tear then you should resubmit your claim explaining why this leak was caused by accidental damage. Pay attention to the wording in your small print. Halifax use the word 'inevitable', so explain why such an event was not inevitable.
At this stage and with the ball firmly in your insurance company's court you have to wait and see what they decide to do. Either your insurance company will pay out or once again reject your claim.
With the cases followed by the BBC team, most were rejected again, leaving many with the challenge of taking it to the Financial Ombudsman, forgetting about the claim or speaking to a loss assessor.
Talk to a loss assessor
Obviously, we know our industry 'inside out' and know how insurance companies work. They have professionals who work on their behalf, so why shouldn't you.
If you have to make an insurance claim, then talk to a loss assessor.
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