Insurance Cash Settlement question

AJS

Am I right in thinking that a cash settlement from a Home Insurance claim can be spent on anything I like ?

I have negotiated a more than acceptable cash settlement for a damaged carpet. The insurance assessors quoted £940 retail replacement value or £740 cash settlement. Due to the fact that the assessors don't have a preferred supplier within 20 miles of my home I got a quote from my local Carpet Right which was £1150 which I submitted to my insurance company. Rather surprisingly they have agreed to give me a cash settlement of the full £1150 minus my xs.

Is there any reason why I can't:
a) by an inferior carpet to what is on the quote and also get another room done ?
b) use a cheaper carpet supplier and pocket the rest
c) leave the carpet as it is and basically pocket all the cash ?

FlameCloud

Unless they want a vat invoice before releasing the funds, the money will be yours to do with as you wish.

InsideInsurance

Normally for a cash settlement it is as simple as that. The moneys yours, the insurers obligations are discharged, you do with the money whatever you want.

Occasionally they will only give you the net amount and will only release the VAT element once they have a copy of a VAT invoice but it isnt that common and if they havent mentioned it then its unlikely to be the case. Even in these circumstances if you decide you dont want to have the work done you can still pocket the money and do with it what you want but you just dont ever get the VAT element