House Insurance - Cash Settlement
Discussion
Hi,
Does anyone have any experience of house insurance and cash settlements? We have a central heating leak under our new wood floor, under the parquet.The insurance assessor is round at the moment and saying they would look to settle it as a cash offer?
Has anyone got any experience of this? we've never claimed on the house before.
Thanks,
Dan
Does anyone have any experience of house insurance and cash settlements? We have a central heating leak under our new wood floor, under the parquet.The insurance assessor is round at the moment and saying they would look to settle it as a cash offer?
Has anyone got any experience of this? we've never claimed on the house before.
Thanks,
Dan
I'm not in the UK, but I faced a similar thing last year when I claimed my local insurer for reparing roof storm damage. They emailed me and offered €500 to settle, but my broker told me to wait until I had the roofer's estimate.
Estimate came in around €750.
I sent that to the insurer by email and they credited my bank a/c in about 3 days!
Estimated amount was the invoiced amount.
Estimate came in around €750.
I sent that to the insurer by email and they credited my bank a/c in about 3 days!
Estimated amount was the invoiced amount.
Not my area and no experience, so this is just a layman's view, but I would think that a cash settlement favours you if you're going to fix the issue yourself DIY, eg £10k job to get a man in, buy the materials for £2k and spend your weekends doing the work = £8k in your bank account rather than someone elses.
But, it favours the insurance company because it passes the risk on to you if the job is more involved than they think it is. Eg, costs £10k to get a man in to do it, but you've already settled with the insurers for £8k. Costs you £2k.
Plus they won't be finding the man to come and sort it for you either. Which might be good or bad depending on whether you'd rather it was done by someone you've vetted or by whoever the insurers could find that was dirt cheap.
But, it favours the insurance company because it passes the risk on to you if the job is more involved than they think it is. Eg, costs £10k to get a man in to do it, but you've already settled with the insurers for £8k. Costs you £2k.
Plus they won't be finding the man to come and sort it for you either. Which might be good or bad depending on whether you'd rather it was done by someone you've vetted or by whoever the insurers could find that was dirt cheap.
paulrockliffe said:
Not my area and no experience, so this is just a layman's view, but I would think that a cash settlement favours you if you're going to fix the issue yourself DIY, eg £10k job to get a man in, buy the materials for £2k and spend your weekends doing the work = £8k in your bank account rather than someone elses.
But, it favours the insurance company because it passes the risk on to you if the job is more involved than they think it is. Eg, costs £10k to get a man in to do it, but you've already settled with the insurers for £8k. Costs you £2k.
Plus they won't be finding the man to come and sort it for you either. Which might be good or bad depending on whether you'd rather it was done by someone you've vetted or by whoever the insurers could find that was dirt cheap.
Well this is the thing, i can do most of the prep (exposing the pipe) in an evening and then we have a plumber who we have used for years and i can just let him have keys and leave him to it. Which I wouldn't be comfortable with with a random the insurance company appoints? They've said we should know by Friday so we shall see!But, it favours the insurance company because it passes the risk on to you if the job is more involved than they think it is. Eg, costs £10k to get a man in to do it, but you've already settled with the insurers for £8k. Costs you £2k.
Plus they won't be finding the man to come and sort it for you either. Which might be good or bad depending on whether you'd rather it was done by someone you've vetted or by whoever the insurers could find that was dirt cheap.
We were unfortunate enough to have a water leak under the kitchen floor, it was serious enough that we had to move out for 6 months while the work was completed and drying out. The insurance company offered us 2 options, a fully project managed service with all work guaranteed for 2 years. Or a cash settlement. We went for the fully project managed service which was woeful, we spent more time on the phone chasing getting work done that you would believe.
If we ever have another claim, i would always look to take a cash settlement and appoint your own contractors, at least that way you have things under control, rather than feeling helpless at the hands of others
If we ever have another claim, i would always look to take a cash settlement and appoint your own contractors, at least that way you have things under control, rather than feeling helpless at the hands of others
In me experience, albeit in dealing with larger claims, insurers will usually apply a discount of typically 25% if a cash settlement is preferred by the policyholder
This would be applied to the cost of the work as determined by actual builders quotes/tenders and reflects that the insurance contract is one of indeminity against loss (and the cost of the work is often greater than your loss in value terms).
It may however be different on smaller claims where often they just want to settle and close the books.
This would be applied to the cost of the work as determined by actual builders quotes/tenders and reflects that the insurance contract is one of indeminity against loss (and the cost of the work is often greater than your loss in value terms).
It may however be different on smaller claims where often they just want to settle and close the books.
I would check the terms to see what you are actually covered for to see if there is a risk of you not being covered if you don't take the cash settlement.
The terms and conditions may say for example you are covered for accidental damage but it is unlikely a pipe underground is going to be accidentally damaged. It is more likely that the leak is caused by a wear and tear issue such as a pipe that has corroded over time. If the latter scenario occurs you need to find out whether they will pay out.
The terms and conditions may say for example you are covered for accidental damage but it is unlikely a pipe underground is going to be accidentally damaged. It is more likely that the leak is caused by a wear and tear issue such as a pipe that has corroded over time. If the latter scenario occurs you need to find out whether they will pay out.
Made a claim back last Summer for damage from a leak.
They won't match the estimate from my trusted guy but offered cash, about 20% less, about 3 months ago.
Still not seen it though.
Insurance with Arqiva. They have been fuggin useless, constant chasing.
Renewal came in at 900 last week, up 300 thanks to claim not dealt with.
Changed companies and it's now 370 for the same cover.
They won't match the estimate from my trusted guy but offered cash, about 20% less, about 3 months ago.
Still not seen it though.
Insurance with Arqiva. They have been fuggin useless, constant chasing.
Renewal came in at 900 last week, up 300 thanks to claim not dealt with.
Changed companies and it's now 370 for the same cover.
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