Cowboy builders add to flood misery
The Mail has learned several leading insurance companies and loss adjustors have hired private auditing firms to investigate claims made by building companies following the devastating floods.
Ann Thompson, 54, of Westlands Road, west Hull, said she discovered her builder had overcharged her insurer, Direct Line, by £15,000.
Direct Line is now understood taking legal action against the building firm, which is from outside of the region.
Mrs Thompson said: "The standard of workmanship was so poor I decided to get a copy of my claim from the insurers.
"I almost swallowed the phone when they told me my claim was £42,000 – this was £20,000 more than my neighbours' and my house is not as big.
"The contents of the claim were so inaccurate I immediately applied my highlighter pen to the items not received and the work that had never been done.
"The builders probably thought I would not realise that insulation, skirtings, a UPVC front door, a fireplace and coving had not been supplied or fitted.
"My loss adjustor was devastated when I showed him and when he looked more closely he found other items.
"He had a meeting with the builder and the builder held their hands up and reimbursed them £15,000."
A spokesperson for Direct Line said the company could not comment because of the ongoing action.
Although insurance companies prefer to use their own accredited builders to carry out repair work, due to the unprecedented amount of claims in 2007, in many cases, insurers allowed unaccredited builders to carry out the work.
The only way for insurers to recoup their loss is to increase premiums – an issue which was revealed in part of an exclusive investigation by the Mail three months after the floods.
Paul Hendy, of the National Flood Forum, said the problem is widespread.
He said: "I am aware of overcharging in Hull, where builders have made up items they have installed in people's homes and charged the insurer for it.
"This type of behaviour is deplorable and brings the insurance claim process into disrepute.
"The end result is raised premiums and withdrawal of insurance cover.
"Information from loss adjusters leads me to think this was widespread across the region."
Malcolm Tarling, of the Association of British Insurers, said the more money insurance companies pay out, the more money they will look to recoup.
He said: "Whenever insurance companies deal with unprecedented claims, it is inevitable there may be cases where this happens.
"Insurance companies would be dismayed if they thought they were being ripped off by cowboy builders.
"If insurers are paying out more, this could impact on the cost of insurance for everyone.
"The more insurance companies have to pay out, the more they will have to review premiums. This could impact on a lot of customers."
