Insurance claims and repair work

Insurance claims and repair work

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A client of mine rents out a property to a tenant but unfortunately the property was flooded twice last year.

Insurance covered part of the repair but not all.

There were 2 lots of excess £700 each time; are these insurance excesses allowable expenses against the property's income?

Also she commissioned a surveyor to assess how to stop the problem recurring; part of the work recommended included repairs to drains and soakaways to return things to how they were before the floods but part was to try and prevent the flooding happening again.

Can the surveyors cost be allowed as an expense and can all the repair work be allowed or should part be disallowed as improvements.I sense it is a grey area; could improvements to things like drains and soakaways qualify for capital allowances as "integral features"?

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By pawncob
19th Jan 2015 11:22

Yes the excess is allowable.

Strictly you should apportion the costs of the surveyor's report, but in view of the fact that this happened more than once, you could make a case for it all being deductible as repairs.

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