Interesting one.  Hopefully the Q insurance scheme carries legal
cover.  My initial opinion would be send the bill to the council as
they are responsible for the road. It would be up to them to seek
recompense from the house owner, however ................  a few years
ago I had a claim against a council, the only good news is that when I
called to find out which council/ department was responsible they were
helpful and I could get through to them pretty quickly.  They also do
have a formal claim procedure.  The downside is that once you have
made the claim it takes 12 weeks about to investigate, they will
refuse the claim and it is at this point the legal wrangles start.

Therefore it may be best to start with the homeowner as it won't be
such a black hole and inform the council what you are doing and of
their responsibility.  That way a) they may become a useful weapon in
the claim against the householder (if the council make them redo the
road) and b) if ultimately your claim was agianst the council they are
informed.

Note that my claim was unsuccessful; the reason was that you have to
prove the council negligent and so if the council have a regular
maintenance scheme they work to and if they have not received any
complaints about that bit of road they are not negligent.  However in
this case if you inform  the council they are forced to act, so if the
homeowner is wrong they will make them undo the mods, therefore
supporting your claim.

Hope this is of some use.

Nigel

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