Help with insurance claim wrong settlement figure given

naturalbliss

I recently claimed on my home insurance for escape of water from dish washer that damaged the laminate flooring. Without our knoweldge the hose had come out of the back of the dishwasher and been running under the laminate for weeks before we noticed water squeezing out between planks. After much deliberation we decided to claim on house insurance.

firstly one company came out to assess the damage and reported that the floor needed replacing (I had to pay the excess of £250 up front to them). I asked ins. company whether the kick boards of the kitchen were damaged, so they assigned a loss adjustor to come and check it. Then another company assessed the units and installed drying equipment for 3 weeks to dry out kitchen. THey reported no damage had occurred to the kick boards.

Anyway after a confusing process of different companies doing different things, I was eventually informed that it had been assessed that a cash settlement of £1021 + £30 for electric use could be paid if I chose not to purchase floor through their recommended retailer. I wanted to look into my options of what floor to get but eventually chose a cash settlement as the recommended company did not do tiles. Loss adjustor agreed to issue me with cheque for £801 and get other company to reimburse the £250 excess in next few days.

After about three days I had a phonecall from loss adjuster apologising as he'd made a mistake and given me the gross figure and not the net figure which was £653, meaning I'd get a cheque from them for £403 and £250 reimbursed. I explained that he'd told me on 2 seperate phone calls that I'd receive £1021 in total and I had based my subsequent decision on this regarding tiles and this had caused me a great deal of inconvenience. After thinking long and hard, I decided to officially complain outlining mistake on their behalf of figures given. However, loss adjuster rang today to say he'd apologised for his mistake and there was nothing more could be done or that they were liable for citing it was same as if bank paid me money by mistake that I'd have to return it. I said an apology was not enough as I'd expected to receive £1021 +£30 elec and made plans and ordered tiles as a result of this. He said that legally they didn't have to do anything else other than apologise. I said I wanted to take complaint further and he said it was my choice but basically nothing else would be done anyway.

I know the complaints procedure and involving FSA if not happy, but wondered if anyone had come across this before and whether I do have any rights based on their original figures given? Ideally I'd like their original figure to be honored but even an offer of good will payment would be better than a mere apology. Any help/advice would be much appreciated.

Better_Days

Would be a big help if you could use paragraphs (difficult I know if using a phone to post) but it is very hard to follow otherwise.

However, if I understand correctly, the loss adjuster advised you by telephone that you would be paid one amount when in fact he had made a mistake and they are going to pay less.

I think to proceed you will need to make a formal complaint via your insurers complaints procedure, and take to the ombudsman if you don't get a satisfactory response. May be worth having a browse round the FOS website to see if they have adjudicated on a similar case.

chanz4

anything in writting?

naturalbliss

No I didn't receive anything in writing giving settlement figure just 2 phone calls and third one apologising but mistake had been made.

I followed complaints procedure as outlined in policy booklet and website which was to phone and complain first, which I did. Should be resolved within 48hours. Loss adjuster did call within 48 hours but even though I said I wasn't happy with just an apology as a resolution to complaint he didn't offer to escalate it. According to policy booklet next step should have been escalation by insurance company for which I'd receive acknowledgement and then resolution within 8 weeks, if still not happy to contact FSA. However, looks like I will have to write and escalate it myself.

I've checked FOS website and can't find anything similar to go by.
I just wondered if anyone had come across anything similar and whether I did have any rights in terms of them honoring original figure they gave.

TSx

naturalbliss wrote: »

No I didn't receive anything in writing giving settlement figure just 2 phone calls and third one apologising but mistake had been made.

I followed complaints procedure as outlined in policy booklet and website which was to phone and complain first, which I did. Should be resolved within 48hours. Loss adjuster did call within 48 hours but even though I said I wasn't happy with just an apology as a resolution to complaint he didn't offer to escalate it. According to policy booklet next step should have been escalation by insurance company for which I'd receive acknowledgement and then resolution within 8 weeks, if still not happy to contact FSA. However, looks like I will have to write and escalate it myself.

I've checked FOS website and can't find anything similar to go by.
I just wondered if anyone had come across anything similar and whether I did have any rights in terms of them honoring original figure they gave.

Possibly - do you have a reciept for the tiles you've now ordered as a result of it? Are you able to cancel the order? If you can prove you've genuinely suffered financially as a result of their mistake then the FOS will probably ask the insurance company to pay something towards the difference, as you've relied on the information they've given.

Unfortunately, mistakes do happen - I've had to make that awkward phone call on more than one occasion where someone has overlooked something, or perhaps the excess has been advised incorrectly.

If you've gone ahead with something when they've informed you a payment is on the way, and it's not cancellable now, then I would say that you should be compensated though.

naturalbliss

Tiles had been ordered and tiler organised in between phone calls going by the original figure. In fact they have been laid this week as we couldn't cancel the order and tiler had booked us in. Do have receipt for tiles, floor leveller, grout and cement stuff to stick them down.

TSx

naturalbliss wrote: »

Tiles had been ordered and tiler organised in between phone calls going by the original figure. In fact they have been laid this week as we couldn't cancel the order and tiler had booked us in. Do have receipt for tiles, floor leveller, grout and cement stuff to stick them down.

In that case, I would just follow the complaints process, emphasising that you have suffered a financial loss as a result of them giving you the incorrect settlement figure. Unfortunately, it won't be quick but they should offer you some compensation