Claim for damage from neighbours home insurance - cash settlement

[Yui77]

Not sure exactly where to post this...

We had some building work done in 2019 and our neighbours reported this caused hairline cracks on the party wall and a damp patch on a shared roof. They got a surveyor via their home insurance who said that in all probability the cracks were caused by vibration from removing plaster on our side and the damp patch (size of a tea towel) on a ceiling from us removing the ridge tiles.

We have doubts due to the state of their property and the bad condition of the shared ridge when we purchased our house but accepted what he said and agreed to pay for repairs in line with what he advised was needed (polyfiller and painting).

Neighbours initially wanted to settle privately but then sat on this for over 12 months. Earlier this year they sent us a very expensive quote for repairs (would be able to plaster and repaint 3/4 rooms).We weren’t happy but agreed to pay the amount requested directly to the plaster/decorator on receipt of an invoice to settle the matter. Neighbour then decided to go via their insurer...

Their insurer has now settled with them in cash for double the value of the quotes they sent to us. We made the insurer aware of these quotes when they first contacted us.

My understanding is that insurance/settling a claim should put them back in the position they were before the damage occurred, not give them thousands of pounds cash spare? The quotes they sent us for the work are at half of the cost their insurance has paid out.

I have requested a breakdown of the cost to try and get a better understanding as this wasn’t provided but said very clearly that we aren’t paying that much and why.

We do have home insurance, a party wall agreement (but no photos of their walls before work started) and the builder did have insurance. We didn’t want to go through the builder for a number of reasons and as such also didn’t go via our insurance (as these would send us to the builder) but they are fully aware.

We don’t have money for this sitting there but could find it, although I don’t think we should have to pay the amount requested because it’s far more than required.

Just wondering if anybody has any advice/understanding around this?

Thanks.

You should offer to settle for what you consider to be a fair amount. Be clear that this is your final offer. The insurance company will then have to decide whether to accept your offer or take you to court. They may, of course, try to negotiate but you can simply dig your heels in and refuse if you believe your offer is adequate.