Laptop claim, insurer wants to settle at trade price

TenBob

I damaged my laptop which turned out to be un-repairable.

I have accidental cover on my home contents policy, so claimed. Now my insurer has written to me saying they can offer £1400 (which is the price they have seen the laptop on sale), minus my excess of £100, so in total £1300.

The trouble is, I cannot replace my laptop for £1400, let alone £1300 (the laptop is now retailing for £1800). I asked the insurer to provide a link to the retailer selling the laptop, and they responded saying 'that is the trade price we can get'.

But that's NOT the price I would have to pay to replace it.

Is this how the insurance industry works or am I being spun a tale to save the insurer a few hundred quid?

Thanks.

societys_child

they responded saying 'that is the trade price we can get

Have you asked them to replace the laptop than, instead of paying you cash?

Aretnap

They should make it possible for you to replace the laptop with the same model (or the nearest equivalent, if the exact model is no longer available). That could take the form of

(a) You pay them your excess, and they send you a replacement laptop (which they may well get at a discount - they buy a lot of laptops so have more bargaining power than you or me)
(b) They send you vouchers for a preferred supplier, sufficient to buy the laptop from that supplier (they will probably have obtained the vouchers at a discount), or
(c) They send you cash

If they offer to do (a) or (b) but you insist on cash, then they would normally only have to pay you the price it would have cost them to replace the laptop (or buy the vouchers) - which may well be less than the normal retail price of the laptop.

So have they offered to do (a) or (b) and are you insisting on cash (in which case they're probably in the right), or is this the only option they've given you (in which case they're probably not)?

Retrogamer

How old was your laptop?

macman

Unless your cover offers new for old, then you should expect to get the current value of the laptop. So, if one or two years old, it's value could be much less than when new.
But, since laptops specs increase every year, you should be able to replace it with an equal or better model for less than it cost new.

FutureGirl

You might find your policy has a clause saying that, where you choose to have a cash settlement, it'll only be at the cost they can get items for, minus your excess.

Why don't you just ask them to send you a new laptop?

Blibble

macman wrote: »

Unless your cover offers new for old, then you should expect to get the current value of the laptop. So, if one or two years old, it's value could be much less than when new.
But, since laptops specs increase every year, you should be able to replace it with an equal or better model for less than it cost new.

This is true, but not related to OP's post.

OP should expect the current value of the laptop ONLY if the same model unit is delivered or vouchers made available for purchase of the same unit from a reputable retailer. Where the same model is discontinued, a spec-for-spec, brand new unit should be sourced under the definition of like-for-like within the policy. Price does not factor in, as noted in quote above. If they can source a spec-for-spec unit, brand new, for £55 then they will (extreme scenario; would never happen, but just to demonstrate the point).

If the customer wants to sort the replacement off their own back, i.e., take the cash and buy from a retailer not approved by / partnered with the insurer, this will be at the price the insurer can sort the replacement / voucher for.

There is usually a policy term stating that the choice of settlement options is up to the insurer (whether it be cash / vouchers / etc.), and that any cash payment will be at the cost price to the insurer.

You are not being taken for a ride on this occasion if the insurer can also offer either a voucher or replacement item on a like-for-like basis as defined within your policy. They must also offer a non-cash settlement at full retail value of a like-for-like replacement otherwise you would be being conned; if they just offer cash (unlikely) then insist they offer delivery or vouchers of a like-for-like item as per FoS guidance or cash at full price.

prowla

A while back we had a laptop stolen and they offered us the price of a generic one to replace it, in the form of a voucher for Currys.

I replied and said that the model was a specialised one with upgraded graphics and higher resolution screen; they reviewed it and confirmed that was the case and increased the amount, so that we were able to get a similar one.