Insurance Claim for Personal Possessions

tlc1802

Hi

I have a claim for a lost engagement ring which was insured separately on my contents policy as Personal Possessions. The value was based on a valuation now 6 years old. The insurance have agreed to settle issuing me with a card to use in certain jewellers only only for the value it was insured for £2900.

The problem is, to replace the ring in the chain of jewellers they specify, it would cost me £4500 for a ring exactly the same.. The only way I could replace it would be to downsize the size of the diamond.

I have found an independent jeweller who can replace the ring on a like for like basis for £2900 so the insurers are now considering a cash payout but are talking about taking 30% off as this is the discount (kickback?) they get from the chain....

Does anyone know if this is normal/legal? What's the point of insuring items separately if they are not going to give the full value on a cash payout?

dacouch

You do not have to accept the voucher if the jeweller cannot offer a suitable replacement.

Here is the relevant guidance notes and rulings from the ombudsman, quote these to the claims handler (A lot of them will not know of it). If they do not play ball ask for a superviser and explain the situation (Politely) and they should accept your jewellers.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm