Understanding your liability in case of damage to third parties
The building’s insurance policy
Bilton Towers’ insurance policies were changed in 2009, on the basis of the building’s claims history. The building’s insurance policy now covers fire and water damage in the building’s communal areas (this includes the pipes that provide water and heating/cooling fluid up to the point where they enter a resident’s premises), with the first £ 2,500 (“Excess”) of any incident to be borne the Bilton Towers service charge budget.
Repeated occurrences of damage caused water ingress resulted in a steep increase in the annual cost of the insurance policy, which rose from GBP 59,172 to GBP 89,000 between 2009 and 2012. This unfavourable trend was reversed following the extensive refurbishment work that has now limited the risk of damage caused rainwater on the building’s flat roofs. Following those repairs, the main source of damage is nowadays is internal, either from the water supply or the drains.
What is covered whom?
The building’s insurance policy covers damage caused water ingress through the roof, external walls, and rainwater drain pipes. It also covers leaks originating from the communal water pipes and drains.
As general guidance, you should consider any section of water pipes and drains that only serves your flat as being under your own responsibility in case any damage is caused to your flat or those of other lessees.
Consequently, any damage resulting from faulty appliances, overflowing water, defective joints and seals, leaking pipes or drainage within the apartments is the responsibility of that apartment’s occupier and/or owner, and it is strongly advisable to get insurance to cover for such third party liability incidents. Because many apartments in Bilton Towers are only occupied during part of the year, water leaks can have caused considerable damage the time they are detected.
Historically, many of the incidents that have resulted in damage to the property have been the consequence of on-going or recent refurbishment works in a Lessee’s flat. Lessees intending to carry out works in their flat must, therefore, require a proof that their contractor(s) are adequately insured for any damage they cause directly or indirectly to the building or to other Lessees flat.