Home Tradesman's price for 'Processing Insurance Claim' Underfloor leak

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K-Man

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We recently had an underfloor leak and I called the insurer to get advice on next course of action.

I found a plumber and he came out to assess one evening and quoted me €400 to put in a temporary repair as trapdoors had to be cut in the floor, so the price was for 1 day of himself and 1 day for a carpenter. The guys did the temporary repair and I then provided details to the insurer who assigned a loss adjuster.

The loss adjuster came a few days later and the plumber called out to meet him and explain the details of the repair, problems and claim. Meeting took about 15 mins at our home for them both to discuss and agree best course of action. I then filled out a claim form from the insurer and added the cost estimate provided to me by the plumber.

Plumber then kept in contact with us very regularly and was also in contact directly with loss adjuster, who he had dealt with before on other claims. A week or so later we got notification from loss adjuster that he was recommending that our claim be processed for a certain amount.

Now that I know the claim should be processed I have asked the plumber for his quote for the job. He provided me with a quote for several '000 but on request also provided me with a breakdown of work completed to date.

This included €600 for the initial callout and temporary repair (not the €400 quoted), as well as an additional €500 for 'processing the insurance claim'.

Now we didn't have anything in writing until now, but the only figure quoted to me so far has been the €400 for the day's work to do the repair. Obviously I'm not happy that he's trying to pull me for €1,100 for 1 days work + 15 minute meeting + a simple quote.

Planning to call him tomorrow to express my 'confusion', but expecting him to try and defend his cost.

Anyone have any experience whether tradesmen normally charge to provide a quote to an insurer like this? I'm all for paying a guy an honest wage for an honest day's work, but this type of exhorbitant pricing for simple non time-consuming work is unjustifiable.
 
Re: Tradesman's price for 'Processing Insurance Claim'

Don't pay him so...

Pay him the 400, that's what was quoted, let him bring you to court for the rest. That's what I'd do... unless of course he was reasonable, in which case I'd consider paying more, but never 1,100 on a 400 quote..

Of course your insurance company may simply decide to pay him.. I'm not sure.
 
Re: Tradesman's price for 'Processing Insurance Claim'

He has been very reasonable and accommodating so far - now I understand why.

Also, I am going to be very surprised if the insurance company provides the funds directly to him.
 
Re: Tradesman's price for 'Processing Insurance Claim'

It seems to me that he is charging you for his services in representating you in your insurance claim. Did he actually put in writing 'processing the insurance claim'? If he did, then he is acting as an insurance intermediatory and unless he is regulated by the financial regulator to act as such, then he is committing a criminal act!(the regulator put this in writing in the Irish Times recently) I agree that people should receive a fair days pay for a fair days work, but, in my opinion, what he is doing is taking the proverbial. In your position, i wouldnt meet that cost and advise him that you will report him to the financial regulator if he persists with the matter.
 
Re: Tradesman's price for 'Processing Insurance Claim'

Yep - this is what has been stated in my quote....this is probably a direct 'cut and paste' from the claim report that he sent to the loss adjuster. Nice work for €500 if you can get it....


Initial call out euro 600
Process insurance claim euro 500
To take up existing floor boards and damaged joists in hall
Replace wall plate on a new damp course, replace damaged and rotted joists.
Treat all new timber with preservative.
Remove all wet debris from sub floor
Replace flooring in hall with boards or semi solid flooring chosen and supplied by yourself.
Remove flooring in hallway.
Back prop stairs.
Replace lead water main.
Supply skip and remove all rubbish. Euro 2,700
 
Re: Tradesman's price for 'Processing Insurance Claim'


His actions and his bill suggests that he has acted as an Insurance Intermediatory. If this is the case,unless he is regulated, he is breaking the law. You wouldnt pay your local barman legal fees, you wouldnt pay your taximan a commission for financial advice, so why would you pay your plumber for processing an Insurance claim, when he is neither qualified or regulated to do so? You can check the legal status of his activities with the financial regulator and verify the position. Then i guess, its up to you whether you pay the guy the 22.7% fee he is charging.
 
Re: Tradesman's price for 'Processing Insurance Claim'

Spoke to the plumber today about the fees and he stated that it was standard practice to include his 10-15% of the secured claim amount for 'processing the claim'.

He suggested that I contact both the insurance company and / or the loss adjuster to confirm that this was the norm.

He stated that in order to secure the claim amount he met the loss adjuster, submitted a plumber's report / quotation and followed up several times with the loss adjuster to monitor and force progress.

He was doing all of this on a no claim, no fee basis. So if my claim wasn't successful he wouldn't take this fee.

Anyone else come up against this sort of carry on ?
 
Re: Tradesman's price for 'Processing Insurance Claim'


No, this is not the norm for a plumber or a builder who provide a quotation for an insurance claim. It is the norm for a loss assessor. On the basis of what you have said, your plumber has acted as a Loss Assessor.

In order to do this, he MUST be regulated. His actions are illegal if he is not regulated. It is common law that people cannot benefit from criminal activity, therefore, how can he legally force you to pay him for his criminal activity. If he is regulated and provides you with proof of this, ask him for his registration number and copy of regulation certificate.If he is regulated, then he has a legitimate claim for you to pay him.

I do realise that i am sounding like a broken record, but i assure you that this is correct. If you have any doubts click on the following link and call the number provided. Explain the position and seek their advices. [broken link removed]
 
Re: Tradesman's price for 'Processing Insurance Claim'

I am amazed that the loss adjuster who is handeling this matter on behalf of the insurers was prepared to even discuss the matter with the plumber.

As a fully regulated loss assessor who complies with all aspects of the requirements of the consumer protection code I am amazed that the regulator is and has regulated individuals who do not comply with and aspect of the code.

I am prepared to provide any assistance to the op in resolving this claim without any charge becuase the sooner that this behaviour is stamped out the better.

In reading quite a number of postings it is clear that there is a view from a number of posters that asssessors are nothing short of rip off merchents.

I try to be fair and reasonable to all sides and if there is anythig that I can do to improve this position I would do it.




 
Re: Tradesman's price for 'Processing Insurance Claim'


In fairness to the Adjusters, they are still waiting clear instructions from the majority of Insurers as to whether they should deal with unregulated entities. A ridiculous situation!

Many if not most of the Assessors who have been regulated have absolutely no insurance qualifications whatsoever. On this basis, it is very difficult, or as far as i am concered, impossible to have any confidence in the regulatory process. It would seem that the main criteria in becoming regulated is the ability to pay the required amount.

Rip off merchants? On the basis of my extensive experience of them, "Shysters" is not a strong enough word for most loss assessors.
 
We also phoned the loss adjuster who couldn't remember the exact claim (as he had so many) but he didn't immediately say that he disagreed with what my plumber was proposing - we're waiting for him to check his files next week.

In fact, when we called him a 'plumber' the loss adjuster said that he was 'more than just a plumber'.

It appears that the two know each other from having several claims in common - probably why he's not saying that anything incorrect has occurred.

My biggest issue is that a guy has incurred €500 worth of cost without telling my and now that I am due to get my insurance money, he's looking for this €500 for 'processing the claim' irrespective of whether I choose him to do the remainder of the work (which I won't be of course).

There's no way I am going to pay this guy this amount of money for doing so little.
 

Have you asked this "plumber" if he is regulated by the financial regulator? Have you taken earlier advice and contacted the financial regulator?

The only "incorrect" thing that may have happened is that this plumber has acted as an insurance intermediatory, without being regulated. It could be argued that the Adjuster shouldnt have dealt with him, if he knew he wasnt regulated. However, i did cover this point in an earlier post on this thread.

He hasnt incurred €500 worth of cost. This is a professional fee that he proposes to charge you. This cost is not covered by your policy.

If this guy is a regulated intermediatory and you have entered into a contract with him to represent you and process your claim, then a court may decide that you do have to pay him.

The issue here is very simple. Either he is regulated or he is not. If he isnt, (here i go again, broken record), then he has broken the law and is not entitled to charge you. If he is regulated, then if he has provided a service, he has a legitimate expectation that you will pay him for his services. The very best advice that i can give you on this matter is to contact the financial regulator.
 
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