house fire settlement

dacouch

bazzaffc wrote: »

Yes it is but this is not in question ...thanks

Well it could make a difference the Insurance being with Nationwide (Churchill) and them requesting the mortgage to be settled. The FSA or Ombudsman may deem this unfair if they would not have insisted on it had your Insurance been through an Insurer that was seperate from them

Astaroth

bazzaffc wrote: »

i dont know yet, i should find out from my insurers today.
thanks

I would more be asking my mortgage company than the insurer.

I cannot remember if Nationwide or RBS (Churchill) deal with the claims side of the Churchill underwritten home insurance.

huckster

bazzaffc

I have had dealings with Insurance underwrting and claims connected with mortgages.

It is pretty standard that mortgage companies will not allow Insurers to offer their mortgage customers cash settlements for Buildings claims above a certain amount. The Mortgage company can insist that the claim is paid to contractors to repair the property. Although they only own £25k out of its current value, this interest gives them a say in these matters. This is covered by the mortgage contract and also the agreement between lenders and Insurers under the CML's handbook.

If you want a cash settlement, you will have to pay off the mortgage or continue the argument with the mortgage company as to why you want a cash settlement. Otherwise just arrange for the Insurers to pay the claim to the relevant contractors to carry out the repairs.

dacouch

Huckster it would be interesting if the OP requested the Cash settlement or it was offered by the Insurers without being prompted.

huckster

Going back to the first post from the OP, they say that the Insurance company offered a cash settlement, but then Nationwide would not agree to this.

I am suprised that the Insurers offered a cash settlement, as the claim amount was esimated at £100k, according to a further post.

If there is £25k outstanding on the mortgage, I can understand why they don't want a cash settlement.

I have come across cases in the past, where people in desperate circumstances have disapeared with cash settlements and have not used them to repair properties. In one case one gentleman who had problems with his business, disapeared abroad with the money, leaving his wife to pick up the pieces. In another case someone used the cash to carry out dodgy repairs to the property, with the result that the subsequent repairs were more costly than the original claimed amount.

I think Nationwide probably have had their fingers burnt in tbe past, so I think they are being sensible in asking for the claim settlement to be paid to contractors.

magpiecottage

There is one big advantage to getting the insurer to organise your repair and settle direct with the contractor.

The contractor then becomes the agent of the insurer who is thus responsible for the quality of the work. If they mess it up and refuse to put it right, there is a long history of both the Financial Ombudsman Service and its predecessor the Insurance Ombudsman forcing the insurer to put it right.

If you take the cash and organise it yourself then you will need to organise the work and if it is substandard you will be on your own - the Ombudsman can't help you.