Home insurance claim

michael8626

Hi
I am contemplating a cash settlement for a flood claim. It happened four months ago and the property is still being dried. Reinstatement work by the insurers appointed contractors may not be completed until this autumn, hence looking at a cash settlement and using local contractors. The cash settlement offer is low for the work involved.
Has anyone any previous experience of this scenario, is there much room to negotiate, how low will an insurer come in with a settlement? 

Bearing in mind they still have an obligation to treat a customer fairly. 

Could I ask them to justify their offer against the schedule of work to reinstate, detailing materials and labour? 

Thanks 

DullGreyGuy

The ombudsman for a long time has considered cash settlements inline with what their suppliers would have charged them to be fair as long as the terms of their policy confirms this. There is normally a section about "how we settle claims" where this would be put in. Clearly insurers have the buying power to negotiate favourable rates.

You can ask your insurers whatever you want, they aren't compelled to comply but most are reasonable if a request isn't too onerous. 

Annemos

Just one other thing, too. If you take your own Contractors, you will be responsible if they do anything wrong. And you will not be able to go to the Ombudsman. 

But if you use the Contractors provided by the Insurer, then the Insurer is responsible if anything is done badly and you can go to the Ombudsman if necessary, for their opinion, too.