William Eichler 23 November 2022

Councils owed over £9m from property damage

Councils owed over £9m from property damage image
Image: Martin Gillman / Shutterstock.com.

Local authorities across England could be owed at least £9.3m from unclaimed costs after property damage alone in the past five years, research by loss recovery firm Corclaim has revealed.

A freedom of information request to all 332 local authorities in England showed that between 2017 and 2022, an estimated £91m was spent repairing council-owned property that had been damaged by vehicles in more than 171,000 incidents – 60% of which was not recovered through either insurance policies or uninsured loss recovery (ULR) methods.

ULR is the process of recapturing costs and expenses – such as repairs, policy excess and other associated costs – that may be incurred if council-owned property has been involved in an incident that was not the fault of the local authority or its employees.

With an estimated one in six incidents having a traceable third party, at least £9.3m could be recovered through ULR, according to Corclaim.

Examples from the FOI request include campervans hitting car park barriers, stolen cars smashing into street signs and on-site contractors causing damage during works.

Ian Evans, partner and head of operations at Corclaim, said: ‘While it is usual for local authorities to be insured for any liabilities, in a lot of cases, there is no or limited insurance for their own losses in relation to property damage.

‘ULR can be overlooked by councils, possibly because they are unaware the opportunity exists or are fearful of ULR costs – resulting in thousands of pounds’ worth of unclaimed losses annually. In fact, our research revealed that approximately one in 14 local authorities are not using ULR at all.

‘With continuing budget costs, local authorities are looking to claw back as much cash as they possibly can and ULR is one way to do this. Losses can still be recovered for a period of six years post-incident, so the accidents referenced in our freedom of information request can still be recovered – even if they took place back in 2017.’

To read more on this check out our feature, 'How councils can claim back what they are owed'.

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