# Builder bankrupt can i Sue their Insurance Company



## jumper1 (4 Feb 2013)

Hi , 

Hired builder(with Insurance)  to build house , unfortunately after house built water leaked into house and caused damage.  Notified builders Insurance company of damage and Tried to get builder to fix , builder gone bankrupt. Went after builders Insurance Company to cover cost of Damage but Insurance Company wont deal with the Claim as builder (even though Bankrupt) wont give permission for Insurance Company to progress as builder said he will fix damage .

Seems a bit of a  cop out but is there any point going after the Insurance Company. 

Regards,Jumper 1


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## Time (4 Feb 2013)

Yes.

Complain in writing seeking a final response and if not happy complain to the Financial Ombudsman.


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## kkelliher (4 Feb 2013)

jumper1 said:


> Hi ,
> 
> Hired builder(with Insurance) to build house , unfortunately after house built water leaked into house and caused damage. Notified builders Insurance company of damage and Tried to get builder to fix , builder gone bankrupt. Went after builders Insurance Company to cover cost of Damage but Insurance Company wont deal with the Claim as builder (even though Bankrupt) wont give permission for Insurance Company to progress as builder said he will fix damage .
> 
> ...


 
This is not correct by any stretch. IF there is a policy in place then they have a resonsibility to deal with the issue. A builder can indemnify them in that he can give them a written confirmation that he does not wish to have a claim on his insurance and will deal with it himself but why would he do it if bankrupt? 

I would send a letter to the insurance company stating you want action


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## WizardDr (4 Feb 2013)

@jumper1

Send a letter to Insurance company asking them for a final letter so you can go to Insurance Ombudsman.

Get Solicitor immediately and get letters sent to all parties and be prepared to institute proceedings.

I am assuming all the facts are correct.


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## jumper1 (4 Feb 2013)

Thanks for reply. Architect confirmed Builder paid for all work , builder says he has not .  Builder trying to twist our arm to to pay up before they allow us to claim through his Insurance . I would not do this as builder would walk off with money and still not let us claim through Insurance, playing mind games .


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## Jim2007 (4 Feb 2013)

When you say that the builder has gone bankrupt, what exactly do you mean?  Has a liquidator been appointed to the company?  If so then the builder has no legal authority to deal this at all...


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## jumper1 (5 Feb 2013)

Hi , Dont believe builder is officially bankrupt but as good as , builders subcontractors are calling at my house looking for money or builders home address as they have not been paid for a number of months . Builder has not submitted Accounts for 2 years and previous accounts submitted said that builder has no money. I would believe builder is at least insolvent.


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## Jim2007 (5 Feb 2013)

jumper1 said:


> Hi , Dont believe builder is officially bankrupt but as good as , builders subcontractors are calling at my house looking for money or builders home address as they have not been paid for a number of months . Builder has not submitted Accounts for 2 years and previous accounts submitted said that builder has no money. I would believe builder is at least insolvent.



Well if he is continuing to operate a company that is insolvent, then he is acting illegally so perhaps as an alternative to paying him cash, perhaps the suggestion of having him declared bankrupt might nudge him along in the right direction...


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## Time (5 Feb 2013)

Bankruptcy in Ireland does not work quite like that.


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## jumper1 (5 Feb 2013)

I dont think anything in Ireland does unfortunately. Anyway as first suggested i or my Solicitor may write to the Insurance Company and see if we can get something going that way and see what comes out if it . Am not sure if i can mention that Builders is not paying creditors and is not in a position do anything but will consult solicitor on this , thanks all for help .


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## WizardDr (5 Feb 2013)

@Jumprer1 

Its important to have all your facts clear if you are taking action.

The size of the job - have you paid anything over?
How bad is the leak and what damage has it casued?

How did the insurance matter arise? As in whats the coverage for? 

It could be that you owe them money on a 'quantum meruit' basis as in work done not paid for. You may argue that the job was incomplete - the leaked caused you loss and they are liable to you ..

I am inclined to think that the facts need to be straightened out particularly as the Builder may be a company and not in fact in liquidation - yet - and your contract could be crucial - but I am not clear on all aspects.


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## Jim2007 (5 Feb 2013)

Time said:


> Bankruptcy in Ireland does not work quite like that.



As someone who worked in this are for six years, I think I have a pretty good idea of how bankruptcy, insolvency and receiverships work!!!


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## jumper1 (3 Jun 2013)

Hi , Builder is now bankrupt and a Liquidator has been appointed .
(a) can i now go back to Insurer and pursue original claim made over a year ago or do i have to make a new claim.
(b) Other water ingress have been detected which are the builders fault , can i now add to original claim or do i have to make a fresh claim for these.

Regards, Jumper1


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## Luternau (3 Jun 2013)

Did your builder offer a structural guarantee through homebondremier? That may be another avenue to follow. With Homebond you have 3yrs cover for water penetration. Its not great cover though and there are so many conditions/exemptions etc.


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## DirectDevil (20 Jul 2013)

Also, ask your solicitor to consider S.62 of the Civil Liability Act 1961.


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