Contents Claim - Interim Payment

kevj1977

Hi all, We have recently suffered a fire at our home which is in the process of our claim being settled, however to assist us the insurance sent out an interim payment of £6500.We have now validated our list of items Beyond Economical Repair (BER) and submitted replacement costs to our loss adjuster.The loss adjuster is now asking for receipts of all items we have bought so far "to cross-reference against the lists".Firstly, is this a standard practice?Secondly, if for example, our sofa was valued at £1500 and we replaced it with one for £1000 and submitted the receipt, would the insurance then deduct the £500 difference from our final settlement?The way I see it is that if I spend less on some items, we can upgrade other items during our refurbishment, ie that additional £500 could be used to buy better quality replacement items elsewhere. Is this a reasonable assupmtion or are the insurance company perfectly within their rights to deduct the difference?Thanks in advance.

22johnny22

Your policy I would assume covers you (subject to adequacy etc) to replace the damaged (BER) property on a like for like basis.

If your sofa costs £1500 to replace on a like for like but you choose to buy a cheaper one you are therefore in effect opting to settle not on a replacement basis but on an indemnity basis.

they would not be obliged to then pay more than other items are worth to replace.

I would suggest you speak to the Loss adjuster and explain what you are proposing to do and they should be reasonable with you.

At the end of the day in the case of a fire where the property is clearly identifiable there is no doubt you had it the value is one for discussion anyway.

Insurers as a rule when they are very happy with the circumstances surrounding the claim like to settle on an amicable basis as long as they are not being asked to pay more than the policy covers.

Best of luck

Spikey1

Hi there,


In the 'old days' you were only allowed to claim the 'like for like' replacement cost if you actually replaced the goods and sent in receipts to prove this. If you did not replace the goods you were only entitled to the market value of the item (ie. its second hand value) at the time of the damage. There was quite a big difference in the monetary values of these two settlement options....hence the reason why proof of expenditure was always requested.


Nowadays, most policies allow either the like for like replacement cost OR the £amount which the insurer could have replaced it for if they'd used their own suppliers (who give the insurers discounts of course). If that is the way your policy is worded you are entitled to either:


a) the FULL like for like replacement cost of the item ...as quoted by your insurers supplier (net of their discount)


OR


b) if your insurers do not have a supplier for the particular item...you are simply entitled to its FULL like for like replacement cost. There is rarely a requirement to produce replacement receipts.


Like I've said before, loss adjusters tend to take generic approaches to settling claims and they don't always check the policy wordings properly. So then....CHECK YOUR POLICY WORDING.....(you'll find it in the 'How we Settle Claims section) and this will tell you how the claim should be settled and whether you need to send in receipts.


Cheers

aggypanthus

Loss companies try to save money for the insurers, to make them selves look good. dont let them wear you down, and dont accept any lesser value from them. You should be offered a full financial settlement to spend as you like, when its all totalled up. .. for your goods.

been there, had a 2 yrs horror story!

22johnny22

aggypanthus wrote: »

Loss companies try to save money for the insurers, to make them selves look good. dont let them wear you down, and dont accept any lesser value from them. You should be offered a full financial settlement to spend as you like, when its all totalled up. .. for your goods.

been there, had a 2 yrs horror story!

Adjusting companies don't actually try to save money for Insurers, they will recommend settlement in accordance with the terms of the contract.

By reducing settlements they actually receive less fees from the Insurance companies so it is not in their financial interests to reduce claims.

Quentin

You seem to be trying to tell us there is no need to consider using our own assessor to fight our corner as the insurer's adjuster will always ensure we will get the best deal.

Really.?

22johnny22

Quentin wrote: »

You seem to be trying to tell us there is no need to consider using our own assessor to fight our corner as the insurer's adjuster will always ensure we will get the best deal.

Really.?

Not at all, me post was a statement of fact.

Assessors have their uses on many occasions.

Quentin

22johnny22 wrote: »

Not at all, me post was a statement of fact...

Oh!!

Thought it was just your opinion.

So this is a fact?:

22johnny22 wrote:

Adjusting companies don't actually try to save money for Insurers

You sure?

When someone wants to kill a discussion by telling us they have posted "fact", they usually give us where the fact comes from.

But in this case, isn't the job title a clue to what you adjusters do?

Unless you are telling us adjusters are sent to get claims adjusted upwards?

22johnny22

Quentin wrote: »

Oh!!

Thought it was just your opinion.

So this is a fact?:



You sure?

When someone wants to kill a discussion by telling us they have posted "fact", they usually give us where the fact comes from.

But in this case, isn't the job title a clue to what you adjusters do?

Unless you are telling us adjusters are sent to get claims adjusted upwards?

Adjusters frequently adjust claims upwards.

Which bit is not a fact?

Quentin

22johnny22 wrote: »

Which bit is not a fact?

This bit of "fact" needs a reference to make it believable:

22johnny22 wrote:

Adjusting companies don't actually try to save money for Insurers

22johnny22

Quote:
Originally Posted by 22johnny22

Which bit is not a fact?

This bit of "fact" needs a reference to make it believable:

Quote:
Originally Posted by 22johnny22
Adjusting companies don't actually try to save money for Insurers




I feel this is not the correct forum for such a discussion and will leave it open for others to provide comment to the OP.


Last edited by Quentin; Today at 12:22 PM.