Insurance Q:

I was in the process of purchasin a house. But 1 week prior to the closing date, their was a major water leak on the property ( burst pipe). I was offered the insurance money and to carry out the works after myself by the vendor and as i was planning on redorcating anyway it seemed win win for both sides. Builders quotes ranged from 28K to 37K. Now the insurance company have offered 15k for renovations which my builder has said is extremely low. But this is all 3rd party from the vendor, ive asked for a copy of insurance letter showing breakdown of quote. Will the insurance company readdress the quote and revise upwards ? Anyone advice would be great. As i think vendor is trying it on and i have the option of telling vendor to rectify all damage before closing.

employ a loss adjuster to work with the insurers towards a mutually acceptable figure.

If you are going to complete the purchase, do it less the amount your Builders have quoted. Have you spoken to your solicitor about this ?? Why should this become a negotiating tactic for you ?? You did not cause the damage and it is up to the vendor to have the damage repaired prior to closing.

Agree with Mercman, you haven't closed so its builders responsibility not yours to get property right before purchase. Its not like there will be a queue of other potential buyers ready to gazump you in current market.
You are in a strong position at the moment, let the builder worry about the shortfall or take it off the purchase price.

StevieC said:

so its builders responsibility not yours

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Why is it the Builder's responsibility ?? It is the Vendor's problem, and it could be that the vendor is going to pocket the differences from what he receives and gives to you.

Apologies I misread, I was assuming that it was a new build and obviously it could be an already completed property. You are right, its the present owners problem.

There was an independent assessor hired by vendor to carry out survey. Its a second hand house. I would agree with mercman that the vendor is trying to cash in on the insurance and if they go to repair house it will lead to months of waiting to agree a closing date. And trying to move on from this now might be a problem as so far down the lines with contracts. Solicitor is checking on pulling out of sale.