home insurance claim

scubaloo

Hi

I'm curious to hear from other people who have made claims or from people that work for insurance companies, on what is classed as 'irreplaceable' in the eyes of insurance companies. You know how they will give you a voucher to buy a 'replaceable' item or money for an 'irreplaceable' item. I'm just trying to get my head around it as there doesn't seem to be any rules, just the whim of the insurance company that day.

Lou

huckster

Hi

To my knowledge 'irreplaceable', to most companies means what it says, cannot be replaced. Example, a one-off piece of artwork.

Do you have a example in mind?

Brodiebobs

huckster wrote: »

Hi

To my knowledge 'irreplaceable', to most companies means what it says, cannot be replaced. Example, a one-off piece of artwork.

Do you have a example in mind?

exactly as above... usually when the insurers suppliers cant source the item.

Again have you some thing specific in mind?

scubaloo

Thanks for your replies. Mainly I'm talking about items of jewellery, for example my great grandma's diamond engagement ring - they want to give my parents £4000 worth of jewellery vouchers (we had a valuation done before it was taken so the amount is right at least) for that so that they can have a replica made. But surely that's not the point? We didnt have it because its a pretty looking ring, we had it because it was handed down for 3 generations.

Obviously I'm emotionally involved in this so I just wanted other peoples objective opinions on whether this is normal practice, or whether we should bother to kick up a fuss with the company.

Thanks again for your help.

huckster

Hi

I cannot see that you have any grounds for complaint. They have paid the amount of the valuation in vouchers, so a replacement can be made or bought. This is standard practice.

I think you are saying that they wanted the cash and not vouchers. If this is the case why did you not just state that as there is nothing wrong with asking for a cash settlement. Sometimes people don't want to replace a sentimental item because the replacement item would never mean as much.

The policyholder should ask the Insurers for a cash settlement instead of vouchers. I believe there are FOS cases where Insurers have been advised to make cash settlement in these situations.

dacouch

Get your laughing gear around this from the Ombudsman which your Insurers have to abide by...

[FONT=Verdana, Arial, Helvetica, sans-serif]Opting for ‘replacement’ is only a reasonable option on the insurer’s part if the object claimed for can be replaced. If the object is antique jewellery, for example, then it is not open to the insurer to insist the claimant buys a modern replacement from a chain shop. Similar issues arise whenever the replacement options are limited. It may, for example, be unreasonable to limit a policyholder’s choice of replacement to a particular retailer. [/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif]Policyholders should be allowed to choose where they purchase a replacement and they are entitled to a cash settlement if they cannot find an acceptable alternative. In such circumstances, we would not regard it as reasonable for the insurer to make a deduction from the cash settlement to represent any discount it would have got if the policyholder had bought a replacement from one of the insurer’s nominated suppliers. Nor would it necessarily be appropriate for the insurer to offer vouchers to the policyholder. If the option of replacement is not available, then the only way in which the insurer can indemnify a claimant is by a cash settlement. [/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif]In some cases, policyholders may not wish to purchase a replacement for the damaged or stolen goods. This may be, for example, because their circumstances have changed, or the object had sentimental value. Where this is the case, we will normally ask the insurer to agree a cash settlement. [/FONT]

Have a read of the entire article so you understand the full context and if it applies to your claim then go back to the Insurers and site the Ombudsman's guidance (They normally pretend to be ignorant of it or deliberately ignore it).

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

SandC

I had a similar item stolen when I was burgled and I was given cash for this as I wouldn't have been able to find anything to replace it and anyway, it was sentimental rather than anything else. The other jewellry I had stolen, which wasn't worth very much anyway I accepted vouchers for replacements and just chose some pieces I fancied. Often they will give you more in monetary value in vouchers than they will in cash. Have you tried asking them for cash instead?

sezzybear

My late grandmother's ring (bequeathed to me) was stolen in a burglary earlier this year and we were given a cash settlement - I bought a lovely painting of a fishing port in Cornwall instead to remind me of her.