Household insurance claim paying out in vouchers

Brit_Chick

I've recently made a claim on my household insurance for a camera that I left behind in a hotel room whilst on holiday. My holiday insurance only covered single items up to a max of £100 which is why I ended up claiming from house insurance although my understanding is that they will seek a contribution from the travel insurers (different companies) in due course.

Anyway, my claim has been approved and I have been sent Jessops vouchers to cover the sum of the SLR camera and lens. These arrived on christmas eve. However, I was given a new SLR camera for xmas by my family and therefore would prefer to have the cash/cheque instead, especially since I never shop at Jessops anyway.

I've contacted my insurance company asking them if I can have a cheque instead, and had to send them various receipts proving ownership of the lost items (which I find somewhat strange that these were never asked for before) and the receipt proving purchase of a replacement camera, which luckily my family were happy to provide me with.

My question is, how likely am I to be able to get a cheque for the sum of the settlement instead? I've been told to keep hold of the Jessops vouchers for now 'just in case' and that they will review my request, but I also hear how insurance companies don't like giving cash settlements.

If they refuse my request, what are my rights? Am I simply stuck with over £1000 of Jessops vouchers until such time that may need anything from there (I would simply end up spending them for the sake of spending them) or can I insist on being given a cheque instead?

Worst case scenario would be that I have to buy something from Jessops to spend the vouchers and then sell it on to recoup some of the money, but obviously that is a lot of hassle on my part and I would lose a significant sum on ebay/paypal/postage fees as well.

dacouch

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

Brit_Chick

Thanks for the link dacouch.

Am I right in thinking that according to this extract, that I am entitled to ask for the cash instead, and that it should be to the same settlement as the value of the vouchers (I've carried out a search on the forum and have read some threads that indicate a deduction of around 30% if asking for cash settlements which seems excessive.

" 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 "
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.

dacouch

It's not amazingly clear cut unfortunately.

If the item was sentimental and you were not replacing then it would mean you get a cash payout with no deductions.

If Jessops could not supply a reasonable replacement it would really help your case, try having a look for a reasonable direct replacement. If they don't it would help.

The ombudsman may take pity on you due to the xmas present, it may be worth giving them a call for their opinion which can sometimes help sway an Insurer, however bear in mind their call center staff have a high turnover of staff and limited knowledge. Sometimes they will just tell you want you want to hear or give the wrong answer so take it with a pinch of salt but it can sometimes influence an Insurer.

When dealing with your Insurer, be polite at all times and do not be confrontational, state the situation clearly and what result you want. A good trick is to turn a question on them such as "How would you feel if you received an carefully selected xmas present from a loved one and then received £1000 of vouchers which are now no use". They have to be very cold hearted to not agree with you

Brit_Chick

Well that is the reason why I would prefer the cash - Jessops do indeed stock both the camera and the lens that I lost. However, I have been given a new (and upgraded model) for Xmas so obviously do not need to replace the camera and already have several lenses so am not in a huge rush to replace the lens - and if I did, I could get a more competitive price elsewhere to be honest.

I have explained this to my insurers upon recipes of the vouchers and am hoping that they will agree to my request. Hopefully I won't have to go down the route of contacting the Ombudsmen, but might be coming back to this thread for further advice if I end up being told that keeping the vouchers is my only option

On_My_Lonesome

Just to add my pennies worth.

If they will not give you cash or want to knock 30% off, it may be worth selling the vouchers themselves on Ebay, a couple of years ago I sold some gift vouchers I received on there and got about 95% of the face value of them which even after Ebay charge would be better than 30% loss.

I don't know if voucher rules for sale have changed on Ebay though.

Brit_Chick

It appears that the vouchers cannot be sold or exchanged - I did consider that but the vouchers have my name on them and I need to take some form of ID with me whenever I wish to use one of them.

HappyMJ

Buy something and without opening it sell it as new. You should get nearly the price that Jessops has sold it to you for. Better than 30% loss I think.

On_My_Lonesome

Oh well sorry was worth a thought, I hope you get sorted.

I had a claim on my gadget policy earlier this year and they were going to pay out in vouchers, I asked and got cash as I wanted the ebook I was claiming for in time for a holiday that I was leaving for before they would have got vouchers to me. I bought a new Ebook cash and they just sent me a cheque for same amount as they had said for vouchers so hopefully your insurance will be the same.

Brit_Chick

On_My_Lonesome wrote: »

Oh well sorry was worth a thought, I hope you get sorted.

I had a claim on my gadget policy earlier this year and they were going to pay out in vouchers, I asked and got cash as I wanted the ebook I was claiming for in time for a holiday that I was leaving for before they would have got vouchers to me. I bought a new Ebook cash and they just sent me a cheque for same amount as they had said for vouchers so hopefully your insurance will be the same.

No worries, was just explaining why I can't sell the vouchers on

Brit_Chick

HappyMJ wrote: »

Buy something and without opening it sell it as new. You should get nearly the price that Jessops has sold it to you for. Better than 30% loss I think.

Great idea, I guess this is what I will have to do if I can't get the cash. I'll just have to minimise my loss by listing on a free listing day.