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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am just about to buy a flat which has a pending insurance

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I am just about to buy a flat which has a pending insurance claim against it from the flat below (water damage) do I take on the responsibility for the claim if not resolved before I buy?
Many thanks
Jon Owen
Hello Jon my name is ***** ***** I will help you.No - the claim didnt happen when you owned it.It would therefore be the responsibility of the previous owner.Can I clarify anything for you about this today please?Alex
Customer: replied 2 years ago.
Thank you for your reply, in a bit more detail....the sellers' plumber apparently caused a leak to the flat below. While our solicitor wanted to add a special clause to the contract whereby the sellers accept all financial responsibility that is not covered by insurance, the sellers' solicitor advised them to cap their responsibility to the excess on the insurance. This, according to our solicitor, may make us liable, if for instance the builder did not have proper insurance or if the insurance company deemed the claim beyond their coverage etc. so we are now at an impasse as the seller won't budge, saying that they don't see what the problem is etc and are threatening to call off the deal if we don't agree to the cap. We are a little hesitant to go against our solicitor's advice and risk being held responsible (apparently the flat below is claiming damages for £12,000) so our solicitor advised us to consult an insurance lawyer.
I see. You need to have and seek an indemnity from the seller then. If not then I would not go ahead with the purchase.Does that help?Alex
Customer: replied 2 years ago.
Thank you for that, I think we will stick with the no clause no sale policy and be prepared to walk away.
I am sorry its not better news.
If I cant clarify anything else have a great weekend.Alex
Customer: replied 2 years ago.
This seems to be their final concession...
'“8 The Seller confirms that two apparent water leaks from the Property has caused damage to Flat 6 below. The Seller further confirms that he will be responsible for any excess that may be due to the insurance company as a result of the water leak and will indemnify the Buyers against all costs, expenses, damages, losses, claims that may arise as a result of the water leaks not exceeding the total sum of £250 for each leak (i.e. £500 total)'
Yes I agree. Its a matter for you really wheteher its worth it.
Can I clarify anything else for you?Alex
Customer: replied 2 years ago.
No, thanks for the advice, have a good weekend.
And you.Alex
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