House Insurance Claims

sd12

I am currently going through a house insurance claim for water damage. I've been in touch with my insurer who sent out a loss adjuster, they advised me my options on getting the work done. The options were to use their own builder, get my own builder or to have a cash settlement based on the amount of damage. I opted to get a quote from a builder who showed me a house he done work in, also his office where he did some renovation, he is very positive about his work and keeps saying that I should not get a cash settlement ! I am deciding on whether I should go with this builder or should just get a cash settlement and get the work done with someone else...? Has anyone been in this situation before and can they advise on best course of action ?

InsideInsurance

You would need to speak to the insurer or loss adjuster and find out if there is any additional deductions from a cash settlement, they will sometimes deduct the VAT element etc.

If there isnt then there is basically no difference. There is a difference between using their builders and one of the other two options as with using their builders the insurers are liable for the quality of the work done where as if you take cash or use your own builders you have no comeback against your insurers if it is a bad job

sd12

Ok. If I use my own builder and I find the work unsuitable then I am in my right to get them to rectify it and only when it's rectified they would get paid, as the payment would come from the insurer ?
Plus, am I right in that if there is additional work that crops up as a result of the original claim the insurance company should be informed so that they could approve payment for it ?