Property damage insurance payout - not settled in full.

[ComtesseDeSpair]

This time last year my flat suffered severe water damage caused by a leak from the flat upstairs. I won’t go into the whole saga but basically, the insurer appointed a managing agent to loss adjust and coordinate the repair works, who were absolutely incompetent from the start - basically, I spent 9 months trying to get them to return my calls to arrange works, nothing was done and by October 2018 I was in exactly the same position as I had been 9 months earlier.

At that point I was utterly fed up and requested that the claim be settled with a cash payout. Eventually this was agreed, but rather than agreeing to the £12,000 which the loss adjuster had quoted to complete all works, the managing agent insisted that as their sub contractor had already purchased and invoiced for £3,500 of flooring materials, I had to have this figure subtracted from the settlement. I wasn’t happy but was so fed up and just wanted to get started in sorting my flat that at the end of January I signed a claim settlement agreeing to accept £8,500 plus delivery of the flooring. I’ve had the cash payout but the sub contractor is now refusing to deliver the flooring. Neither the insurer nor their managing agent (who insisted I had to have the flooring because it had already been invoiced) will return my calls.

I’ve already made a formal complaint about the whole situation, which the managing agent has yet to respond to. I’m now wondering whether my best option is to escalate to the Financial Ombudsman or just open a small claim for the value of the outstanding flooring.

Any advice welcome, many thanks.

On what basis is the subcontractor refusing to deliver the flooring?

I would start with the Financial Ombudsman. Unlike the small claims court it won't cost you anything. Their decision is binding on the insurer but you can still take legal action if you are unhappy.

The ombudsman will eventually be the right avenue, but you have to exhaust the insurer's complaints process before you take it there.

Thanks both, very helpful. “Refusing” is probably too strong a word tbf - they’re more just doing what they’ve done since the beginning and not returning calls, saying they aren’t sure they can deliver to my area any time soon when I have spoken to someone etc.

I feel like I’ve exhausted the complaints process in the sense that I made a written complaint 7 weeks ago, haven’t received any recognition or response and can’t get anyone to return my calls there, either!

If you've made a written complaint, great - I think the ombudsman asks that you give them 8 weeks, so if still no response in the next week, escalation time!

Yeah, here we go: www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm

"Once you’ve complained, the business has to give their "final response" to your complaint. They have to do this within eight weeks at the most, depending on what you’re complaining about"