Compensation Policy Including statutory compensation, service failure and loss of amenities

Transcription

1 Compensation Policy Including statutory compensation, service failure and loss of amenities Version Final By: Watkin Morgan Senior Manager Maria McCarron BOM approved: 22 March 2010 CONTENTS Section Page No PART 1 Statement of Policy 2 PART 2 Compensation Policy 4 1 Introduction 4 2 Objectives of the compensation policy 4 3 Scope of the compensation policy 4 4 Types of compensation Loss of amenities Loss or damage to possessions Statutory compensation Failure of estate services Other service failures / discretionary payments 8 5 Responsibilities under the policy 9 6 Making a claim for compensation 9 7 Timescales 9 8 Payment of compensation 9 9 Monitoring and reporting 9 10 Appeals 9 PART 3 Compensation Procedure 10 Appendix 1 Compensation request form 13 Appendix 2 Compensation information leaflet 16

2 PART 1 COMPENSATION POLICY STATEMENT CDS Co-operative seeks to provide to the highest possible standards of customer service to its tenants and the tenant-members of its client co-operatives. However, we recognise that occasionally we may not meet the standards we aspire to and acknowledge that sometimes this may cause financial loss or significant inconvenience. When such incidents are reported to us, we will thoroughly investigate and where appropriate, offer compensation. Compensation may be payable in the following circumstances: 1. If you are unable to use part of your home because we need to carry out a repair or because we are carrying out major repairs Compensation payable will depend on the rooms affected and the length of time you are unable to use the rooms. We will not pay compensation if you have caused the problem or contributed to it. The amount of compensation payable is shown in table 1 over the page. 2. If you cannot use any of your services because we have not carried out a repair Applies to failure of heating or water heating, water supply, gas supply, sanitation and electricity. Compensation will not be payable if you cannot use an amenity because: of a failure on the part of another service provider (gas company, water board, etc); as a result of a natural disaster; due to vandalism or negligence or; if for any reason, the Society does not have the power to restore the service. Compensation is only payable if a repair has been requested and has been not completed within our published timescales. Table 2 over the page shows the amounts payable. 3. If our contractors have damaged your property or personal possessions In the first instance we will ask you to claim from the contractor. The contractor will be expected to make good your losses. If the contractor fails to do this, please let us know so we can investigate. 4. If damage has been caused to your property or personal possessions because we have failed to carry out a repair Compensation will be payable if you have reported the defect to us; we have failed to carry out the repair within our published timescales and the delay has resulted in the damage to your property or possessions. We will not pay compensation if you have not reported the fault or if the damage has resulted from an act of vandalism or negligence by a third party. 5. If we require you to temporarily or permanently leave your home so that we can repair it or redevelop it If you are an assured or a secure tenant, and your landlord requires you to move, you may be entitled to statutory compensation. You may also ask your landlord to cover your reasonable expenses. CDS Co-operatives will pay at least the statutory amount of compensation and will meet the reasonable expenses of tenants. We will provide you with information about statutory compensation if we need to ask you to move out of your home. 6. Compensation for improvements The right to compensation for improvements is set out in Housing Corporation Circular 33/94 (Revised 2002) and applies to tenants of registered providers of social housing. You have the right to claim at the end of your tenancy for certain improvements, but only if you have carried out these improvements at your own expense and with the prior written consent of CDS Cooperatives or your own housing co-operative. You must prove that the amount you are claiming is reasonable. The maximum compensation that can be paid is We can provide you with more information of the right to compensation for improvements on request. 2

3 7. Right to repair Tenants of registered providers of social housing have the right to claim compensation if the landlord fails to carry out certain repairs (known as qualifying repairs). The right is set out in Section 11 of the Landlord and Tenant Act This is usually known as the right to repair. A qualifying repair must be a repair categorised as an emergency repair (24 hours) or an urgent repair (5 working days) and cost no more than 350. The specified completion target must have been set taking into account the health, safety or security of the tenant. Notes 1. All claims for loss, damage or personal injury will be subject to investigation and will also be reported to our insurers. If we consider that the amount of the claim is greater than can be considered under this policy, or if we consider that it would be inappropriate for us to admit liability, we may refer the matter to our solicitors rather than consider it under this compensation policy. 2. CDS Co-operatives will only pay compensation in respect of services it directly provides under a management agreement, and not for services provided by a client co-operative, its contractors, other agents or employees. 3. Compensation for failure of estate services (cleaning and grounds maintenance) will be paid by way of a refund or reduction in the service charge and not under the compensation policy. Table 1 Amounts of compensation for loss use of one or more rooms Room affected Compensation payable as (% of rent) Living room 20% Bathroom (if only bathroom) 20% Kitchen 20% Bedsit / one bedroom flat: 40% Bedroom (per bedroom) Two bedrooms: 20% Three bedrooms: 13.3% Four bedrooms 10% Table 2 Compensation for loss of amenities (daily amounts) Service affected Compensation payable Central heating 5 Water heating 5 Water supply 5 Gas supply 5 Electricity supply 5 Waste / sanitation 5 3

4 1 Introduction PART 2 COMPENSATION POLICY CDS Co-operatives seeks to provide to the highest possible standards of customer service to its tenants and the tenant-members of its client co-operatives. However, we recognise that occasionally we may not meet the standards we aspire to and acknowledge that sometimes this may cause financial loss or significant inconvenience to customers. When such incidents are reported to us, we will thoroughly investigate and where appropriate, offer compensation. Section 2 of the Tenant Services Authority s regulatory code requires registered providers of social housing to maintain the good reputation of the sector, foster positive relations with stakeholders and to be accessible and transparent to residents and other stakeholders. Having a fair and responsive compensation policy is part of CDS Co-operative s commitment to meeting the standards set by the regulatory code. This policy should also be read alongside the complaints policy. It is not necessary for a customer to make a formal complaint in order to claim compensation, but there is discretion within the complaints policy to award compensation if the Society is at fault and the customer has suffered loss or damage as a result of a failure in the service. However, it should be noted that while any person or organisation with a relationship to the Society may make a formal complaint, use of the compensation policy is restricted to residents of homes owned or managed by CDS co-operatives. 2 Objectives of the compensation policy The objectives of the compensation policy are: 1. To ensure that CDS Co-operatives services are of the highest possible standard and to recognise that residents are inconvenienced when the service drops below these standards. 2. To ensure that CDS Co-operatives complies with the rules on statutory compensation for home loss, disturbance and disrepair. 3. To keep the costs of the compensation scheme to a reasonable level and to ensure that the amount of compensation paid is fair but not excessive. 4. To minimise the risk of an inadvertent admission of liability leading to financial loss or damage to the Society s reputation. 3 Scope of the compensation policy This policy document outlines the circumstances in which compensation may be payable to a person to whom CDS Co-operatives provides housing services under a management agreement. The compensation policy applies to tenants of homes owned and managed by CDS co-operatives; leaseholders of homes where CDS Co-operatives is the freeholder; and homes managed by CDS Co-operatives under a management agreement (but limited to claims in respect of services provided under the agreement). The policy does not apply to applicants, visitors of homes managed by CDS Co-operatives, contractors, other stakeholders or any other person or organisation. 4

5 4 Types of compensation 4.1 Compensation for loss of amenities CDS Co-operatives may pay compensation if a tenant is left without an important service or other amenity due to a delay in carrying out a repair. Compensation may also be payable if the tenant is unable to use part of their home. Compensation will be payable according to fixed scales depending on the nature of the service or amenity which cannot be used, the length of time it cannot be used for and the reason it cannot be used. CDS Co-operatives will only compensate for loss of amenities where the fault (or the responsibility if there is no fault) lies solely with the Society. Compensation will not be due if a supply or service fails because of the action or inaction of the tenant or a member of their family; because of action or inaction on the part of the utility company or of any other third party; or because of severe weather or other natural disaster Loss of the use of one or more rooms In the event that a tenant is unable to use one or more rooms in their home for an extended period because it is in need of repair, compensation will be calculated as a % of the rent payable. The amounts of compensation for each room are shown in table 1 below. Compensation will only be payable if the room cannot be used for more than four weeks and if the tenant has not caused the problem or contributed to it. Table 1 Room affected Living room 20% Bathroom (if only bathroom) 20% Kitchen 20% Bedroom (per bedroom) Compensation payable (% of rent) Bedsit / One bedroom flat: 40% Two bedrooms: 20% Three bedrooms: 13.33% Four bedrooms 10% Temporary loss of services CDS Co-operatives sets target completion time for restoring essential services following a breakdown. The essential services are electricity, gas, water, sanitation, heating and water heating. Targets times for repairs vary according to the seriousness of the breakdown and the time of year. If target timescales are not met, the Society will pay a fixed amount of compensation for the loss of the service. No compensation will be payable if the tenant is entirely or partly responsible for the loss of service; if the cause of loss of service is the failure of another service provider (gas supplier, water board, etc); if the loss of service is due to natural disaster or; if the loss results for criminal activity or negligence by a third party. 5

6 Loss of heating and / or hot water Compensation will be payable after 24 hours or 5 days (depending on time of year), but only if the tenant is not provided with a suitable alternative form of heating while repairs are carried out. If the loss of service lasts for more than 5 working days and the alternative form of heating provided by CDS Co-operatives is more expensive, the tenant can ask for reimbursement of their additional energy costs. Loss of gas, electricity supply or other utility or essential service Compensation will be payable after 24 hours, but only if the fault does not lie with the supplier, is not a result of a natural disaster and is not due to criminal activity (including vandalism) or negligence by a third party. Table 2 below shows the amounts payable in respect of each service. Table 2 Service affected Central heating 5 Water heating 5 Water supply 5 Gas supply 5 Electricity supply 5 Waste / sanitation 5 Compensation payable (daily) 4.2 Loss or damage to property or personal possessions CDS Co-operatives owes a duty of care to the tenants of the homes it owns and also to the tenants of the homes it manages for other landlords under a management agreement. This means that the Society may be liable for any damages occurring because it fails to carry out a repair or if it sends a contractor to carry out a repair and the contractor causes damage to the property or the tenant s possessions. Compensation will only be payable if there is evidence of negligence or deliberate misconduct on the part of the Society s contractors or employees Loss or damage due to failure to carry out a repair CDS Co-operatives aims to maintain its homes to a high standard and carries out a rolling programme of major repairs and improvements to ensure that as far as possible, the Society adopts a preventative, rather a reactive, approach to property maintenance. Nevertheless, we do recognise that occasionally, faults may occur which result in damage to decorations or personal possessions. The Society will only be liable for such damage if the fault and consequent damage was foreseeable and if we could reasonably have been expected to have acted sooner to remedy the fault. Compensation will only be paid in respect of actual costs incurred and not for distress or inconvenience. Residents of homes owned or managed by CDS Co-operatives are strongly advised to take out contents insurance to cover the cost of repairing and replacing their personal possessions and redecorating their home in the event of flood, fire or other serious incident. Claims for loss, damage or personal injury will be subject to investigation and may be reported to the insurers. Claims which may exceed the maximum amount allowable under the compensation policy ( 5,000) or where it would be inappropriate for the Society to admit liability may be referred to solicitors rather than considered under the compensation policy. 6

7 4.2.2 Loss or damage caused by a contractor In the first instance, residents reporting damage caused by a contractor should be advised to claim directly from the contractor. Contractors will be expected to make good any damage they cause, and / or to pay sufficient compensation to enable the resident to carry out repairs and replace damaged items. If the contractor fails to make good the resident s loss, CDS Co-operatives will investigate. If the contractor refuses to pay compensation to a resident where it is clearly due, CDS Co-operatives may agree to compensate the resident and seek redress from the contractor. 4.3 Statutory compensation, including home loss and disturbance payments Statutory compensation is compensation payable by law by a landlord to a tenant. There are various types of statutory compensation, including compensation for the permanent or temporary loss of one s home, compensation payable because repairs have not been carried out and compensation payable in respect of the tenant s own improvements Tenant is required to move on a permanent basis Under the terms of the Land Compensation Act 1973 (as amended by the Land Compensation Act 1991), CDS Co-operatives must pay "Home Loss" and "Disturbance" payments to tenants who are required to move permanently so that redevelopment, improvement, modernisation and conversion schemes can take place which affect the tenant s existing home, or where a move is temporary but the resident returns to a completely redeveloped home. This compensation, known as a home loss payment, compensates for the permanent loss of the tenant s home with a fixed lump sum payment. The amount of the payment is periodically reviewed by the government. There are certain conditions, but providing these conditions are met, compensation can be requested up to six years after the tenant has moved. A tenant who is entitled to a home loss payment will also be entitled to a disturbance payment. A disturbance payment is reimbursement for reasonable expenses incurred in moving home. Reasonable expenses include: Removal expenses. CDS Co-operatives may agree to pay for the removal or reimburse the tenant for their costs up to an agreed limit. Any costs relating to disconnection and reconnection of utilities. The cost of redirecting post for up to three months. Alterations to floor coverings curtains, or the cost of new ones if the old ones cannot be altered satisfactorily. CDS may set a maximum budget for replacement items. Disconnection and reconnection of white goods Tenant is required to move on a temporary basis There is no entitlement under the Land Compensation Act 1973 to a home loss payment if a tenant is only required to move on a temporary basis in order that their landlord can carry out essential repairs to their permanent home. However, CDS Co-operatives will reimburse all reasonable expenses incurred by tenants who are required to move on a temporary basis. The definition of reasonable expenses will be the same as that set out in 4.1 above for permanent moves, but expenses will also be paid in respect of the move back to the permanent home. Tenants may also claim for reasonable storage costs if it is not practical for them to move all of their possessions to their temporary home. 7

8 4.3.3 Compensation for improvements The right to compensation for improvements is set out in Housing Corporation Circular 33/94 (Revised 2002) and applies to tenants of registered providers of social housing. Tenants have the right to claim at the end of a tenancy for certain improvements, if these have been carried out by the tenant, at their own expense, and with the written consent of the landlord. The tenant must prove that the amount claimed is reasonable and the maximum compensation that can be paid is The amount of compensation shall be calculated using the formula given in the Department of the Environment Statutory Instrument 613/94. This formula considers the cost of the improvement, the notional life of the improvement and the time elapsed since it was carried out Right to Repair Tenants of registered providers of social housing have the right to claim compensation if the landlord fails to carry out certain repairs (known as qualifying repairs)as set out in Section 11 of the Landlord and Tenant Act This is usually known as the right to repair. The scale of compensation is 10 plus 2 per day for each day the repairs remain outstanding, subject to a maximum of 50. Compensation will not be due if the tenant has failed to allow access to the contractor or the repair is not completed because of matters outside the landlord s control. A qualifying repair must meet the following criteria: It must be a repair categorised as an emergency repair (24 hours) or an urgent repair (5 working days). The repair must not cost more than 350 The specified completion target must have been set taking into account the health, safety or security of the tenant. If the landlord fails to complete the repair within the promised timescale, the tenant may inform the landlord that the repair has not been completed as agreed. The landlord should then provide a further deadline for completing the work. If the landlord fails to complete the work within the agreed timeframe on the second occasion, compensation should be paid. 4.4 Failure of services paid for by a service charge (estate services) CDS Co-operatives recognises that there may be occasions when one or more estate services cannot be provided for a period of time. Most commonly this is due to staff absence or to a failure on the part of a contractor. Compensation for failure of estate services will be made by way of a refund of service charges already paid or by way of an adjustment to future charges. 4.5 Other service failures CDS Co-operatives does not, as a matter of routine, pay compensation for inconvenience over and above the fixed amounts in respect of the specific services set out in this policy. However, in exceptional circumstances, the Society may wish to make a discretionary payment of more than the fixed amount as a good will gesture. Discretionary payments will not normally exceed 50 in value. 8

9 5 Responsibilities under the policy All claims for compensation will be recorded on the compensation database. Processing claims for compensation will be the responsibility of the manager of the department whose service is alleged to have failed. The housing services manager will take overall responsibility for the compensation policy and procedure. Authority to determine compensation payments is delegated as follows: Departmental manager: Up to 1,000 Residents Quality Services Committee: ,000 Board of Management More than 3,000 6 Making a claim for compensation All claims for compensation must be made in writing within 28 days of the event for which compensation is being claimed.. Residents wishing to claim compensation can either complete a compensation request form (appendix 1) or write to the departmental manager responsible for the service concerned. The resident should be asked to provide details of the circumstances leading up to the claim and also evidence of the extent of any damage or loss. 7 Timescales Wherever possible, requests for compensation will be considered within 10 working days of all the necessary information being provided. If it is not possible to meet this timetable (for instance if the claim is for a larger amount and must be considered by the RQSC or the board of management), the claimant should be advised in writing of the date by which the decision will be made. 8 Payment of Compensation Compensation can be paid by way of a cheque or a voucher. If the tenant is in arrears, the compensation will usually be credited to the rent account or otherwise set off against the debt. If the claim is for damage to goods or property, it may be appropriate for CDS to employ someone to make good or to make payment directly to the contractor or supplier concerned. The method of payment chosen to settle a compensation claim is entirely at the discretion of CDS Co-operatives. 9 Monitoring and reporting The amount of compensation paid will be monitored by the housing services manager on a regular basis and reported annually to the resident services quality committee and the board of management. The reasons for compensation claims will be reported on an annual basis. 10 Appeals There is no specific procedure for appeals against decisions relating to compensation. However, residents are entitled to use the complaints procedure to appeal against a decision to reject a claim or to dispute the amount of the award. 9

10 Stage 1 Receipt of claim PART 3 COMPENSATION PROCEDURE The responsibility for assessing claims for compensation rests with manager of the department responsible for providing the service which is the subject of the complaint. This will usually be as follows: Development Manager Home loss payments Compensation for improvements Disrepair Unable to use rooms Damage to possessions (major works contractors) Right to repair Administration Manager Loss of amenities (water, heating, water heating, sanitation, gas and electricity) Damage to possessions (responsive repairs contractors) Compensation claims must be made in writing. Ideally, claims will be made using a compensation request form (Appendix 1). If the resident is unable to complete the form for reasons of literacy or language, it will be the responsibility of their CSO to assist them or find them suitable assistance from another source. The person responsible for opening the post should aim to direct the all incoming compensation claims to the appropriate departmental manager. Misdirected compensation claims should be forwarded immediately to the appropriate manager. Stage 2 Recording the claim All claims for compensation should be recorded as soon as practical after receipt on the Compensation Log (a new module in NOTQLx) by the departmental manager responsible for processing the claim. If the claim will need to be investigated, a acknowledgement letter should be sent within 2 days of receipt. If the claim is received by , the acknowledgement can be by . The resident should also be provided with a copy of the Compensation Claims information leaflet (Appendix 2). If the claim is straightforward and a decision can be made quickly, it is not necessary to send a separate acknowledgement letter. Stage 3 Investigation and decision Depending on the nature of the claim, it may be necessary for the departmental manager to carry out a formal investigation. The nature of the investigation will vary depending on the type of claim. It is not practical to define the appropriate scope for each type of investigation in this procedure. 10

11 Investigations into claims for compensation may involve one or more of the following: A review of relevant documentation or computer records An interview with the resident or request for more information An interview or request for statement from a contractor An interview with a member of staff An interview or request for information from a third party (e.g. the police) Referral for legal advice Referral to a third party for processing (solicitors or insurance company) The scope and depth of the investigation will depend on the circumstances of the claim. Relevant factors will include: The amount of the claim Whether there has been significant damage to property or personal injury Whether the claim relates to allegations of negligence If the claim is for statutory compensation The target timescale for the investigation and decision is 10 working days. If it is not practical to complete the investigation within the target time, the resident should be kept informed and advised when to expect the decision. The results of the investigation should be documented and recorded by the departmental manager. It will usually be sufficient to make a note of the result and reasons for approving or rejecting the claim on the Compensation Log. The date of decision and amount of compensation awarded should also be recorded for each and every claim. Once a decision has been taken, the departmental manager should write to the resident, explaining their decision and advising of the amount of compensation awarded. Stage 4 Payment of compensation claims Compensation will usually be paid in the form of a cheque sent directly to the resident. However, in certain circumstances, an alternative method of settling the claim may be more appropriate. If the resident is in arrears with their rent or service charges, it will usually be appropriate to set off the compensation payment against the debt. If the claim is for damage to property (including decorations), it may be more appropriate to place an order for repairs or pay the supplier directly. It is the responsibility of the departmental manager to either instruct the finance team to issue a cheque to settle the claim / credit the rent account; or to initiate an appropriate alternative method of settling the claim. 11

12 APPENDIX 1 COMPENSATION CLAIM FORM 12

13 Compensation Claim Form You do not have to fill in a claim form to claim compensation from CDS Co-operatives, but it will make it easier for us to process your claim if you do so. Please explain the reasons that you are claiming compensation and, if appropriate, provide evidence to support your claim. Name: Signed:.. Address: Postcode: Telephone: Home:.... Mobile:... Date: SECTION 1 Please tell us why you are claiming compensation. Tick as many boxes as apply. Type of compensation Loss of hot water, sanitation, central heating, water, gas or electricity supply Notes Please complete section 2 Loss of use of rooms Please complete section 3 Damage to your personal property, furniture or decorations Personal injury Compensation for improvements you have carried out to your home Statutory disrepair ( Right to Repair claims) If the damage was caused by one of our contractors, we will ask you to contact the contractor directly. Please complete section 6. We will usually refer claims for personal injury to our insurers. Please provide details in section 6. Please provide details in section 4. Please provide details in section 4. Home Loss Please provide details in section 4. Other reason Please provide details in section 4. 13

14 SECTION 2 FAILURE OF ESSENTIAL SERVICES Please complete this section if you are claiming compensation because one or more of your services has failed: You can use section 6 to provide more details if necessary. Service that has failed: Water heating Central heating Water supply Sanitation Gas supply Electricity supply When did the service fail? When was the service restored? SECTION 3 LOSS OF USE OF ROOMS Please complete this section if you are claiming compensation because you are unable to use one of more rooms: Please provide full details in section 6. Rooms that you cannot use: Kitchen Living room Bathroom Bedrooms Other room When did you become unable to use the room? SECTION 4 ADDITIONAL INFORMATION Please use this section to provide additional information to support your claim for compensation. The more information you can provide, the more quickly we will be able to investigate your claim. Please post this claim form to: Compensation Claims CDS Co-operatives FREEPOST SW140 London SE1 1BP 14

15 APPENDIX 2 COMPENSATION CLAIMS LEAFLET 15

16 Compensation Claims CDS Co-operatives seeks to provide to the highest possible standards of customer service to its tenants and the tenant-members of its client co-operatives. However, we recognise that occasionally we may not meet the standards we aspire to and acknowledge that sometimes this may cause financial loss or significant inconvenience. When such incidents are reported to us, we will thoroughly investigate and where appropriate, offer compensation. Compensation may be payable in the following circumstances: If you are unable to use part of your home because we need to carry out a repair or because we are carrying out major repairs If you cannot use any of your services because we have not carried out a repair If our contractors have damaged your property or personal possessions If damage has been caused to your property or personal possessions because we have failed to carry out a repair If we require you to temporarily or permanently leave your home so that we can repair it or redevelop it Compensation payable will depend on the rooms affected and the length of time you are unable to use the rooms. We will not pay compensation if you have caused the problem or contributed to it. The amount of compensation payable is shown in table 1 over the page. Applies to failure of heating or water heating, water supply, gas supply, sanitation and electricity. Compensation will not be payable if you cannot use an amenity because: of a failure on the part of another service provider (gas company, water board, etc); as a result of a natural disaster; due to vandalism or negligence or; if for any reason, the Society does not have the power to restore the service. Compensation is only payable if a repair has been requested and has been not completed within our published timescales. Table 2 over the page shows the amounts payable. In the first instance we will ask you to claim from the contractor. The contractor will be expected to make good your losses. If the contractor fails to do this, please let us know so we can investigate. Compensation will be payable if you have reported the defect to us; we have failed to carry out the repair within our published timescales and the delay has resulted in the damage to your property or possessions. We will not pay compensation if you have not reported the fault or if the damage has resulted from an act of vandalism or negligence by a third party. If you are an assured or a secure tenant, and your landlord requires you to move, you may be entitled to statutory compensation. You may also ask your landlord to cover your reasonable expenses. CDS Co-operatives will pay at least the statutory amount of compensation and will meet the reasonable expenses of tenants. We will provide you with information about statutory compensation if we need to ask you to move out of your home. 16

17 Compensation for improvements Right to repair The right to compensation for improvements is set out in Housing Corporation Circular 33/94 (Revised 2002) and applies to tenants of registered providers of social housing. You have the right to claim at the end of your tenancy for certain improvements, but only if you have carried out these improvements at your own expense and with the prior written consent of CDS Co-operatives or your own housing co-operative. You must prove that the amount you are claiming is reasonable. The maximum compensation that can be paid is We can provide you with more information of the right to compensation for improvements on request. Tenants of registered providers of social housing have the right to claim compensation if the landlord fails to carry out certain repairs (known as qualifying repairs). The right is set out in Section 11 of the Landlord and Tenant Act This is usually known as the right to repair. A qualifying repair must be a repair categorised as an emergency repair (24 hours) or an urgent repair (5 working days) and cost no more than 350. The specified completion target must have been set taking into account the health, safety or security of the tenant. Notes 1. All claims for loss, damage or personal injury will be subject to investigation and will also be reported to our insurers. If we consider that the amount of the claim is greater than can be considered under this policy, or if we consider that it would be inappropriate for us to admit liability, we may refer the matter to our solicitors rather than consider it under this compensation policy. 2. CDS Co-operatives will only pay compensation in respect of services it directly provides under a management agreement, and not for services provided by a client co-operative, its contractors, other agents or employees. 3. Compensation for failure of estate services (cleaning and grounds maintenance) will be paid by way of a refund or reduction in the service charge and not under the compensation policy. Table 1: Loss of use of rooms Table 2: Loss of amenities Compensation payable Service affected Amount (per day Room affected (as % of weekly rent) Central heating 5 Living room 20% Bathroom (if only bathroom) 20% Water heating 5 Kitchen 20% Water supply 5 Bedsit / 1 bedroom flat: 40% Gas supply 5 Bedroom (per bedroom) Two bedrooms: 20% Three bedrooms: 13.3% Electricity supply 5 Four bedrooms 10% Waste / sanitation 5 17

18 This document is available in other languages, large print, audio tape or Braille upon request. CDS Co-operatives, FREEPOST SW140, LONDON SE1 1BP