# Block insurance excess



## wigwam (10 Nov 2009)

I'm making an insurance claim under the block insurance policy on my apartment block.

Who is responsible for paying the excess on the policy - me or the management company?


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## DianeC401 (12 Nov 2009)

I can tell you how it works for us but you may want to double-check with your agent/management company if this is the same for them. 

Although the Management Company (of which you are a member) are the policyholders, generally speaking the individual submitting the claim is responsible for paying the excess. This is standard business practice. 

The only time when this may not be the case is if it can be proved that the damage was caused by some malfunction in the common areas. In which case it could be argued that the Management Company are at fault and should pay the excess. They would not necessarily be legally obliged to do this but they may decide to do so, to be fair and reasonable.

However if, for example, the apartment above you flooded and caused damage to your property, as you are the one making the claim you will be responsible for the excess. This seems very unfair (and is!) but unless you can persuade your neighbour to contribute to the excess out of decency, you will be liable to pay the excess personally.


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## Helen (4 Dec 2009)

I came up against this issue recently - had a leak from the apartment upstairs & was told the excess I would have to pay was 750 EUR. I couldn't believe it as I was a completely innocent party. Through these forums I contacted a previous poster who'd had a similar issue & they referred me to insuranceworks who are loss assessors. If the job is substantial enough, they will submit the claim, do the work & absorb the excess. I'm still in the middle of this process so can't comment on the final result, but will be delighted if it doesn't end up costing me 750 EUR.


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## lizley (30 Aug 2011)

Hi Helen

This just happened to me this weekend, my excess is €1000 which I just do not have... I havent asked the people upstairs to cough up yet but I think I know what the answer will be. What was the outcome in the end? 
Thanks


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## shesells (30 Aug 2011)

I have heard of block excesses of up to €5k...sadly due to abuse of the insurance system by others. Perhaps you can take a civil action against the upstairs neighbour.


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## t92010 (6 Sep 2011)

I disagree folks - I am going through similar right now. I have taken legal advice and also advice from a person who handles claims. 

The excess is a matter for the policy holder i.e. the MC. The MC pays the excess. 

I am the injured third party. The MC must pay my full costs. It is their issue if they have to cover the excess. I am the third party claiming against the MC as a member of the public who has been damaged by their issue. The MC may actually claim themselves for the excess on their public liability insurance but I am not 100% on this yet. 

To compare an example - if someone crashes into my car and damages it, they pay the full costs of the repair. I do not pay the excess on their policy.

Another example, some apartments in our complex were damaged by a fire. The people who were moved out of their homes, put up in hotels and had their places refurbished did not pay any excess on these amounts. 

Will keep you posted but when I win this, I will spread the word!


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## ontour (6 Sep 2011)

t92010 said:


> I am the injured third party. The MC must pay my full costs. It is their issue if they have to cover the excess. I am the third party claiming against the MC as a member of the public who has been damaged by their issue. The MC may actually claim themselves for the excess on their public liability insurance but I am not 100% on this yet.



If you were walking past the apartment block and the wall fell on you and you had no involvement in the apartment block then you are a third party.

If you own a unit you are not a third party as you are a member of the management company.

The way in which management companies deal with with excess varies from development to development and within a development it varies from incident to incident.  It is always worth pursuing the excess where the incident was through no fault of yours.  In your case there is the precedence of the management company paying the excess for other incidents.


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