Help with an insurance claim

Faith177

Sounds like a goodwill offer to me

They know you haven't under insured the ring on purpose so are trying to help out a little

FlameCloud

AlisonHarrison wrote: »

What makes me think that they should be paying the full amount is that they said that they would waive the excess so that I would not be penalised twice.
I may just be ultra suspicious because I have dealt with insurance companies on a number of occasions and I have never known them to waive the excess so I was not penalised twice.
In my experience they try to avoid paying out at all costs and to waive the excess over something that would appear to be my fault seems odd.

They in effect 'waive' the policy excess because the excess is always the first part of any claim and is deducted before the application of any limit.

Process goes like this-

Claim for £8k
Excess of £100 say
Claim now equals £7,900.

Limit then of £5k is applicable to the claim so quantum assessed at £5k.

dacouch

A lot of Insurers index link the valued amount each year to try and keep track of inflation.

Do any of your schedules (Especially the older ones) state that the specified item is index linked?

hugoshavez

InsideInsurance wrote: »

Your lucky to get an offer of £5,000!

Given you've underinsured most policies have an averaging clause, which means they discount the sum insured by the same amount of the underinsurance in which case their offer would be £3,125 and the excess then would be taken off of it.

Only possible ray of hope..... have you been with this insurer for a long time or did you just switch to them this year?

You should really stop bringing average into threads where people are asking about personal insurances.

hugoshavez

FlameCloud wrote: »

They in effect 'waive' the policy excess because the excess is always the first part of any claim and is deducted before the application of any limit.

Process goes like this-

Claim for £8k
Excess of £100 say
Claim now equals £7,900.

Limit then of £5k is applicable to the claim so quantum assessed at £5k.

Not always. Some apply limit then excess.

TSx

InsideInsurance wrote: »

Your lucky to get an offer of £5,000!

Given you've underinsured most policies have an averaging clause, which means they discount the sum insured by the same amount of the underinsurance in which case their offer would be £3,125 and the excess then would be taken off of it.

Only possible ray of hope..... have you been with this insurer for a long time or did you just switch to them this year?

Average wouldn't apply on a total loss claim - they've paid the premium to insure 5/8 of the value, so that's what they get (otherwise they'd lose out twice)...

(sorry to take off topic)