Claiming on your house insurance

Lourdes_house

We've recently had our house broken into and some jewellery was taken. We're insured with Lloyds and because of the items that have been taken they have passed me through to Aurum Holdings and they've come back with an amount that I'm happy with, but have said that they will issue a card that I can then use to purchase jewellery from a list of shops, like Goldsmiths, Mappin and Webb, Beaverbrooks, Ernest Jones, H Samuel etc, and directed me to a website that lists the stores I could go. I would prefer to replace my items from independent jewellers (whether that be new or pre-owned) rather than from a chain where the majority of items are mass produced and if you want something more individual you have to pay what I think are silly prices. I spoke to an independent jeweller yesterday and he said that he'd asked a solicitor in the past because of the same problem and that if it didn't state in the policy booklet that this was how the company settled claims that I didn't have to accept it and I could ask them to reduce the settlement by maybe 10% and receive the settlement to use as and where I want. This particular jeweller also said that he had tried to be included on the list but hadn't been accepted. I've gone through the policy document and it doesn't mention anything about once a claim has been agreed how payment is made, whether by gift card or cheque to the householder. I've also spoken to both the main insurer (Lloyds) with regard to the information in the policy and she didn't give me a straight answer and who then basically spoke to someone at Aurum Holdings separately and then put me back through to someone at Aurum Holdings who again directed me to a particular website and there is a list of jewellers I can go to. What I'd like to know is whether I have to accept their method of settlement even though there is no mention of in the policy. Apologies for the long post, just looking for some advice as I feel as though I'm being railroaded into accepting something that I don't want.

TSx

Have you asked them for a cash settlement figure?

From the current policy booklet (page 37)

How we settle claims under your Contents covers:
• We can either repair or replace any item or make a money payment instead.
• We will pay the cost of replacement as new if available or otherwise the nearest equivalent less any discounts obtainable.
• If an item is irreplaceable, we will base our payment on expert opinion of its value immediately prior to its loss or damage

They should offer you a cash settlement based on the cost Aurum will charge them - be prepared for the deduction to be more like 30-40% though (e.g £4000 in vouchers often translates to around £2,500 in cash) - this is because as you rightly point out the large retail jewellers charge high mark ups and can therefore offer insurers huge discounts. You are only entitled to be paid what the insurer would pay.