Insurance Offer

shrimpsters

Hi all,

We have had an offer from the insurance company for damaged goods, from a burst pipe at our home.

Does anyone know whether it is worth us asking for more? Is there any room for debate on these offers? The offer is about 25% lower than the initial claim.

Thanks for any advice.

InsideInsurance

Are you settling for cash or replacement items? If cash were you given the option of replacements?

What reason did the insurer give for the lower settlement? Disputing items or just all valuations or.....

shrimpsters

We would ideally have a cash settlement. We were given the option of replacements.
The insurer has not given us a reason for the lower offer.

InsideInsurance

Ok, so wasnt the usual issue as to the reduction.

First port of call is therefore to query the reduction in the settlement with the insurer. Once you know the reason you can then formulate a plan of attack on how to dispute it

forgotmyname

Reduction is because they can source the items cheaper or have a deal with certain shops to get a bonus or discount etc.

They know a lot of people will think. OK we had a lot of junk that we never used so lets not buy those items and have a free holiday.

I did the same with BT. They gave me nearly £200 for not doing work on time.
I owed them over £100 anyway. I thought they would deduct that but they didnt.

I set a direct debit to pay monthly and went on holiday with the £200.

InsideInsurance

It shouldnt be if the insurer has simply decided to a cash settlement rather than offer replacements and the OP refusing and pushing for cash

shrimpsters

Thanks for the advice.

From your reply InsideInsurance, you believe there is some scope to question their decision.

I will give it a go.

Many thanks.

InsideInsurance

You need to find out the reason first. If they are doing a flat discount they have to justify it, as per the comment above my initial assumption was that it was due to you insisting on cash rather than preferred suppliers and thus them taking the PS discount off of it but given they havent offered a PS for the replacement it cannot be this.

If it is a case they are saying certain items werent damaged and you are claiming they are or they werent happy with the proof of ownership (though I would have thought the salvage still exists) then there are cases for arguing but how you argue depends on the issue.

vaio

Slightly off topic but if insurers are reducing payouts because they can get bulk discounts from preferred suppliers does this mean we can reduce the sum insured by the same %?

ie My £500 TV is a total loss, insurer offers £400 due to bulk discount. Should I have insured the TV for £500 or £400?