Understanding Your Rights When a Product Causes Damage
When a product you buy causes damage to your property or belongings, your rights go beyond simply returning a faulty item. It’s important to understand the difference between a faulty product and one that actually causes additional harm. For example, a kettle that doesn’t heat up is faulty, but a kettle that leaks and damages your kitchen worktop has caused property damage.
Faulty product vs. damage caused by a product
A faulty product is one that doesn’t work as it should, is not as described, or doesn’t last a reasonable amount of time. However, if that product goes further and causes damage – such as a washing machine flooding your home, or a phone charger overheating and damaging your socket – then you may have a right to claim compensation for the resulting loss, not just a refund or replacement.
Your rights under UK law
Under the Consumer Rights Act 2015, you are protected when goods you buy are faulty or cause damage. The law states that products must be of satisfactory quality, fit for purpose, and as described. If a product fails to meet these standards and causes damage to your property or other belongings, you can usually claim compensation to cover the cost of repairs or replacement of the damaged items.
Who is responsible: seller or manufacturer?
In most cases, your first point of contact should be the seller – the retailer who sold you the product. They are responsible for ensuring the goods they sell are safe and meet legal standards. However, in some situations, the manufacturer may also be liable, especially if the damage was caused by a design or manufacturing fault. This can be particularly relevant for claims involving significant damage or injury, where you may wish to pursue a claim directly against the manufacturer under product liability laws.
Proving your claim: the importance of evidence
To support your claim for compensation, it’s essential to keep clear evidence. This should include:
Proof of purchase (such as a receipt or order confirmation)
Photographs of the damage and the faulty product
Any correspondence with the seller or manufacturer
Reports or estimates for repairs or replacement of damaged items
Having detailed evidence will make your case stronger and help speed up the claims process.
Where to go next
Understanding your rights when a product causes damage is just one part of protecting yourself as a consumer. For more information about your general rights and what to do if you encounter issues with goods you’ve bought, see our guide to problems with purchased goods. For an in-depth explanation of your legal protections, including your right to compensation, you can also read the Consumer Rights Act 2015 overview.
When Can You Claim Compensation for Damage Caused by a Product?
When Can You Claim Compensation for Damage Caused by a Product?
If a product you’ve bought causes damage to your property or belongings – such as a faulty washing machine flooding your kitchen, or an electrical appliance causing a fire – you may have the right to claim compensation. These situations go beyond simply receiving a refund for a faulty item; they involve seeking compensation for the damage the product has caused to your home or possessions.
Understanding Product Liability
Under UK law, both sellers and manufacturers can be held responsible if a product is defective and causes damage. This is known as “product liability.” The main legal framework is the Consumer Protection Act 1987, which allows you to claim compensation if a product is not as safe as you are entitled to expect and it causes damage to property (over a certain value) or personal injury. You may also have rights under contract law, which holds sellers responsible if the goods they supply are not of satisfactory quality or fit for purpose.
Faulty Goods vs Damage Caused by Goods
It’s important to distinguish between claiming for faulty goods and claiming for damage caused by those goods. If a product simply doesn’t work or is not as described, you can usually return it for a refund, repair, or replacement. However, if the product has gone further and caused damage to your belongings – for example, a leaking fridge damaging your flooring – your claim can include the cost of repairing or replacing the damaged items, not just the faulty product itself.
For more on time limits for returning faulty goods, see how long after purchase can I return faulty goods.
Time Limits and Conditions for Making a Claim
There are strict time limits for making a claim for damage caused by a product. Under the Limitation Act 1980, you generally have six years from the date the damage occurred to start a claim in England and Wales (five years in Scotland). It’s important to act quickly, as waiting too long may mean you lose your right to compensation.
Claims under the Consumer Protection Act 1987 must also be brought within ten years of the product being put into circulation, regardless of when the damage occurred. Always keep receipts, warranties, and any evidence of purchase, as these will help support your claim.
Proving the Product Caused the Damage
To make a successful claim, you’ll need to show that the product was defective and that this defect directly caused the damage. This might involve providing photographs, expert reports, or witness statements. The more evidence you can gather – such as keeping the damaged product, taking pictures of the damage, and documenting any communication with the seller or manufacturer – the stronger your case will be.
In summary, you can claim compensation when a product you’ve bought causes damage to your property, provided you act within the relevant time limits and can prove the product was at fault. Understanding your rights and the steps to take can help you recover the costs of any damage and ensure you’re treated fairly as a consumer.
Steps to Take If a Product Causes Damage
When a product you’ve bought causes damage to your property or belongings, it’s important to act quickly and follow the right steps to protect your rights and improve your chances of getting compensation. Here’s what you should do:
1. Document the Damage
Start by collecting clear evidence. Take detailed photos or videos of the damage to your property and of the product itself. Make notes of when and how the damage occurred. If possible, keep the damaged item as it may be needed for inspection. Avoid attempting repairs or disposing of the product until your claim is resolved.
2. Gather Important Documents
You’ll need proof of purchase, such as receipts or invoices, to show when and where you bought the product. If the item came with a warranty or guarantee, locate this paperwork as it may help support your claim. Keep any packaging, instructions, and records of communication with the seller or manufacturer.
3. Contact the Seller or Manufacturer
Under the Consumer Rights Act 2015, the seller is usually responsible if a product is faulty or causes damage. Contact the seller first, explaining the issue and providing your evidence. If the seller is unhelpful, you can also contact the manufacturer – sometimes they have their own process for handling such claims.
When contacting them, clearly describe the problem, the damage caused, and what resolution you’re seeking (such as a repair, replacement, or compensation for the damage). Keep a record of all correspondence, including emails, letters, and notes from phone calls.
4. Make a Formal Complaint
If your initial contact doesn’t resolve the issue, escalate your complaint in writing. State the facts, include your evidence, and refer to your rights under the Consumer Rights Act 2015. Give the company a reasonable deadline to respond – usually 14 days is appropriate.
If your product is still under warranty or guarantee, you may have extra protection. Find out how to claim using a warranty or guarantee to support your case.
5. What If the Company Refuses to Help?
If the company won’t accept responsibility or refuses to offer compensation, don’t give up. There are further steps you can take, such as using alternative dispute resolution or making a claim in the small claims court. For more detailed guidance, see what to do if a company won’t refund you in the UK.
6. Act Promptly
Acting quickly is crucial. There are time limits for making claims – typically within six years of the damage in England and Wales, or five years in Scotland. Delays can make it harder to prove your case or may mean you lose your right to claim altogether.
By following these steps, you can strengthen your case and improve your chances of getting fair compensation when a faulty product causes damage. If you need more information about your consumer rights or next steps, explore the related guidance linked above.
Making an Insurance Claim for Damage Caused by a Product
If a product you’ve bought causes damage to your home or belongings, you might be able to claim for the cost of repairs or replacements through your home or contents insurance. This can be a useful option, especially if the damage is significant or the seller or manufacturer disputes responsibility.
When to Use Your Insurance
You can usually make a claim under your home or contents insurance if the policy covers accidental damage and the product that caused the problem was being used as intended. For example, if a faulty washing machine leaks and damages your flooring, your policy may cover the repairs. It’s important to check your policy documents to see if accidental damage is included, as not all standard policies provide this cover.
How to Make a Claim
If you decide to use your insurance, contact your insurer as soon as possible after the damage occurs. Most insurers require prompt notification, and delaying could affect your claim. You’ll need to provide clear evidence, such as:
Photographs of the damage
A description of what happened
Receipts or proof of purchase for the damaged item and the product that caused the problem
Any correspondence with the seller or manufacturer
Your insurer may also ask for a report from a qualified tradesperson or an assessor.
For step-by-step guidance on the process, see our detailed section on insurance claims.
Insurance Claims vs. Claims Against the Seller or Manufacturer
Making an insurance claim doesn’t stop you from also seeking compensation directly from the seller or manufacturer. Under the Consumer Rights Act 2015, you may be entitled to a repair, replacement, or compensation if a product is faulty and causes damage. However, insurers often reserve the right to pursue the responsible party themselves (known as “subrogation”) if they pay out on your claim. This means your insurer might try to recover the money from the seller or manufacturer after settling with you.
Important Considerations
Excess: When you claim on your insurance, you’ll usually need to pay an excess – this is the amount you contribute towards the claim. Check your policy for the exact amount.
Future Premiums: Making a claim could affect your future insurance premiums, as insurers may increase your renewal price following a claim.
No-claims Bonus: If you have a no-claims discount, making a claim might reduce it.
Practical Tips
Always keep receipts and product information for items in your home.
Take photos of the damage and the product as soon as possible.
If safe to do so, keep the faulty product for inspection.
If you’re unsure whether to claim on your insurance or pursue the seller or manufacturer directly, it can help to compare the potential costs and benefits of each option. For more advice on your rights and the claims process, explore our insurance claims guidance.
What to Do If the Seller or Manufacturer Has Stopped Trading
If the seller or manufacturer of a faulty product has stopped trading, claiming compensation can be more complicated, but you may still have some options. Here’s what you need to know and the steps you can take.
Why It’s More Difficult
When a company goes out of business, it may no longer have assets or staff available to handle complaints or pay compensation. This means you usually can’t pursue your claim directly with the company, and your usual consumer rights under the Consumer Rights Act 2015 or the Consumer Protection Act 1987 may be harder to enforce.
What You Can Do
1. Check the Status of the Company
First, find out if the company is officially insolvent, in administration, or has simply ceased trading. You can check this by searching online company registers or insolvency notices. This will help you understand whether there’s an administrator or liquidator you can contact.
2. Contact Your Bank or Credit Provider
If you bought the product using a credit card (for purchases between £100 and £30,000), you may be able to make a claim under Section 75 of the Consumer Credit Act 1974. This law makes your credit card provider jointly liable if something goes wrong with your purchase. If you used a debit card, you may be able to use the chargeback scheme to recover your money, although this is not a legal right and is subject to your bank’s policies.
3. Insurance Policies
Check whether your home or contents insurance covers damage caused by faulty products. Some policies may include this type of protection, especially for accidental damage.
4. Other Avenues for Compensation
If the company is being managed by an administrator or liquidator, you can register as a creditor. However, be aware that individual consumers are usually low on the list of priorities for repayment, and you may only recover a small portion of your loss, if anything.
5. Government and Consumer Protection Schemes
In general, there are no government compensation schemes specifically for faulty products from insolvent companies. However, you may find more detailed guidance on your rights and possible next steps in situations like this by visiting the page on if a company stops trading or goes out of business.
6. Seek Legal Advice
If you’re unsure about your rights or how to proceed, consider seeking independent legal advice. A solicitor or a local advice centre can help you understand your options and whether it’s worth pursuing a claim.
Key Points to Remember
Your rights to compensation may be limited if the company no longer exists, but you might still have options through your credit card provider, bank, or insurance.
Always check the company’s official status before taking further steps.
Keep all relevant documents, such as receipts, proof of purchase, and correspondence, as these may be needed for any claim.
For more information and practical guidance, see what to do if a company stops trading or goes out of business.
Understanding your options can help you take the right steps, even in difficult situations. If you need further help, don’t hesitate to seek professional advice.
Using the Small Claims Court to Pursue Compensation
If you’ve suffered damage to your property or belongings because of a faulty product, and the seller or manufacturer won’t resolve your complaint, you may be able to claim compensation through the small claims court. This is a straightforward and affordable way for individuals to seek redress without the need for lengthy legal proceedings.
When to Use the Small Claims Court
The small claims court is designed for resolving lower-value disputes, including compensation claims where a product has caused damage. It’s typically suitable if:
The amount you’re claiming is up to £10,000 in England and Wales, £5,000 in Scotland, or £3,000 in Northern Ireland.
You have tried to resolve the issue directly with the seller or manufacturer but haven’t reached a satisfactory outcome.
Your claim relates to property damage or loss caused by a product you purchased.
For example, if you bought a faulty appliance that caused water damage in your home, and the company refuses to compensate you, the small claims process could help you recover your losses. Similar principles apply in other disputes, such as using the small claims court for car disputes where a purchased vehicle has caused damage.
How the Small Claims Process Works
The process is designed to be accessible, even if you don’t have legal experience. You can usually make a claim online or by completing a form and submitting it to your local court. The main steps are:
Prepare your claim: Gather all relevant evidence, such as receipts, photographs of the damage, repair bills, and correspondence with the seller or manufacturer.
Submit your claim: Provide clear details of what happened, what damage occurred, and how much compensation you’re seeking.
Pay the court fee: Fees vary depending on the amount claimed, but they are generally lower than for other types of court cases.
Court review and hearing: The court may ask for more information or arrange a hearing, which is usually informal. Many cases are resolved without a full hearing.
For a detailed guide on the steps involved, including what to do before you start and how to present your case, visit the Small Claims Court page from Citizens Advice.
Preparing Your Case and Evidence
Success in the small claims court often depends on how well you prepare your case. Useful tips include:
Document everything: Keep records of all communications with the seller or manufacturer.
Collect evidence: Photos of the damaged item or property, expert reports (if available), and receipts for repairs or replacements can strengthen your case.
Be clear and concise: Clearly explain what happened, why you believe the product is to blame, and how you calculated your losses.
Follow legal procedures: Familiarise yourself with the Civil Procedure Rules, which set out the process for making civil claims, including small claims.
Legal Advice and Representation
While the small claims court is designed to be user-friendly, you may still wish to seek legal advice – especially for more complex cases or higher-value claims. You don’t need a solicitor, but you can choose to have one represent you if you prefer. Legal advice can help you understand your rights, assess your chances of success, and prepare your case more effectively.
Taking your claim to the small claims court can help you get the compensation you deserve when a product causes damage and other avenues have failed. For more information on your consumer rights and practical steps, explore related topics on this site.
Additional Consumer Rights and Related Issues
When dealing with damage caused by a product, it’s important to understand the wider set of consumer rights and protections available to you. These can help you resolve issues more effectively and ensure you’re not left out of pocket. Here’s how various related topics and legal protections may apply:
Warranties, Guarantees, and Refunds
Many products come with a warranty or guarantee, which may cover repairs, replacements, or even compensation if something goes wrong. If a faulty item has caused damage, it’s worth checking whether you can claim using a warranty or guarantee. Even if the warranty period has ended, your rights under the Consumer Rights Act 2015 may still apply.
If the product itself is faulty, you may also be entitled to a refund or replacement. Learn more about returns and refunds for faulty goods, including how to make a claim and what evidence you might need.
Cancelling Purchases and Cooling-Off Periods
If you’ve recently bought an item and changed your mind, or if you discover a problem soon after purchase, you may have the right to cancel under the 14-day cooling-off period for certain types of sales (such as online or distance purchases). Find out how to cancel a purchase within 14-day cooling-off period and whether your situation qualifies.
Payment Protection and Getting Your Money Back
If you paid by credit card, debit card, or PayPal, you might have extra protection. For example, Section 75 of the Consumer Credit Act 1974 allows you to claim a refund from your card provider for purchases over £100 if something goes wrong. This can be especially useful if the seller refuses to help. See our guide to getting your money back if you paid by card or PayPal for more details on how to make a claim.
Digital Products and Downloads
Damage isn’t limited to physical items – digital products can also cause problems, such as corrupting files or damaging devices. If you’ve experienced issues with a digital download, you have specific rights under the Consumer Rights Act 2015. Read more about refunds for faulty digital downloads to understand your options.
Counterfeit and Stolen Goods
Sometimes, damage can be caused by counterfeit or stolen products. If you suspect you’ve bought a fake, it’s important to report fake or counterfeit goods as soon as possible. Counterfeit items are not only illegal but can also be dangerous, and reporting them helps prevent further harm to others.
If you think you may have purchased stolen goods, there are specific steps you should take. See our guidance on if you think you’ve bought stolen goods for practical advice.
Other Common Issues
Not all problems involve damage. For example, if your item never arrives, check your rights if something you ordered hasn’t arrived. Similarly, if you’ve paid the wrong price for an item, review your rights if you bought a mis-priced item.
Broader Consumer Rights
Understanding your rights in one area can help in others. If you’re interested in how compensation claims work in different contexts, you might also want to learn about your options with a mis-sold mortgage in the UK.
By knowing your rights around warranties, refunds, cancellations, and payment methods, as well as how to handle counterfeit or stolen goods and digital products, you’ll be better equipped to protect yourself and seek compensation when products cause damage. Always keep records of your purchases and any communication with sellers or manufacturers, as this can help strengthen your claim.
Special Considerations for Specific Products
When it comes to claiming compensation for damage caused by a product, there are some important differences depending on the type of item involved. Certain products – like cars and digital goods – have special rules or extra protections you should be aware of before starting your claim.
Cars and Car Finance
If a car you’ve purchased causes damage, your rights to compensation can depend on how you bought the vehicle. For example, if you used car finance (such as hire purchase or personal contract purchase), the finance company may also be responsible for putting things right – not just the dealership or seller. This is because, in many cases, the finance company technically owns the car until you’ve paid it off in full.
If you’re in this situation, it’s important to check your finance agreement and understand who to contact first. For more detailed guidance on how car finance issues might affect your compensation claim, see our dedicated advice on car finance compensation.
Digital Goods and Downloads
Digital products – such as software, games, or music downloads – are covered under specific consumer protection laws. If a faulty digital download damages your device or causes you to lose data, you may be entitled to compensation or a refund. Under the Consumer Rights Act 2015, digital content must be of satisfactory quality, fit for purpose, and as described.
If a digital product you’ve bought doesn’t meet these standards and causes damage, you have the right to a repair, replacement, or refund. For a step-by-step guide to your rights and how to claim, read our advice on refunds for faulty digital downloads.
Always Check Product Terms and Conditions
Some products – especially complex ones like cars or digital software – may have specific terms and conditions that affect your rights. Always read these carefully, as they may set out the process for making a claim, or identify who to contact in the event of damage. However, remember that your statutory rights under UK consumer law cannot be excluded by these terms, even if the company suggests otherwise.
If you’re unsure about your rights or how to proceed, it’s a good idea to gather all relevant documents – such as receipts, agreements, and any correspondence with the seller or manufacturer – before starting your claim. This will help you make a stronger case and resolve the issue more quickly.
