Mobile Phone: Claim on home insurance.

w00519772

The screen on my mobile telephone recently stopped working. I am insured so I contacted the insurance company and sent the phone away. They have contacted me with three options:

Option 1) They will pay me £294 (less £100 excess) so £194.
Option 2) They will send me a Nokia Lumia 950 as a replacement. I would have to pay £100 excess.
Option 3) Buy a new mobile phone myself i.e. do not use insurance

I have researched the cost of the phone:

Option 1: New: https://www.amazon.co.uk/Microsoft-Lumia-inch-SIM-Free-Smartphone/dp/B016BOFYT0 (£309.97)
Option 2: I could buy a second hand one of Ebay for £160-£180.

I think I am going to choose option three. What would the implications of this be. For example, if you make a claim on your car insurance then it affects your no claims bonus (unless it is protected). What are the implications of claiming on your home insurance? Would my premiums be a lot more in future. I did ask the insurance company what the implications would be, however they said they do not know until I renew..

paddyandstumpy

Do dummy quotes with and without a recent claim, then with a claim that's a year old, 2 years old, 3 years old etc... and you'll see the cost implication.

Blibble

Home insurance is usually new for old, therefore the pricing of a refurb is irrelevant unless you are weighing up sorting the issue independent of the insurer. What was the original phone? Remember the insurer would get a discount on a replacement or voucher, therefore any cash settlement would be at their cost price.

In respect of premium changes, it all depends on the insurer. If you notify of a loss as you have done, however, most deem you to be riskier to insure and up premiums to some degree later on however test this with dummy quotes online to test.

FYI: if you have sent the handset for inspection it could be a pain in the backside getting back. In my experience if you withdrawn from the claim after it's been sent away the insurer has little interest in hurrying the phone back to you as no claim is being made. There may also be a time limit for you to make the decision before the handset is destroyed.

ALPedro

sorry.. but did you check warranty? i know Microsoft have great warranties.

Blibble

ALPedro wrote: »

sorry.. but did you check warranty? i know Microsoft have great warranties.

If OP is claiming on home insurance, then wear and tear (which a warranty would cover) would usually not be covered.

Conversely, a warranty would not cover accidental damage whereas a home insurance policy may do.

w00519772

I checked the warrenty first. It is out of warrenty. I have done some quotes and it is about £30 per year more expensive for five years so probably worth it.

paddyandstumpy

Have you checked your home insurers will accept this claim?

As above, home insurance doesn't cover wear and tear. The phone will only be covered for insured perils, like fire, theft or (if you paid for the extra cover) accidental damage.

If it's "just stopped working" expect the claim to be refused.

rs65

paddyandstumpy wrote: »

If it's "just stopped working" expect the claim to be refused.

They have offered three settlement options.