Buildings insurance claim, cash settlement

wanttobedebtfree85

Hi all, hope someone can help.

If an appointed loss assessor offers a cash settlement for a claim so we can carry out the work with our own contractor rather than be forced to use their contractors, will the insurer challenge this decision? And are the insurer still liable to pay for alternative accommodation whilst the work is done?

To my mind, the loss assessor has essentially just done the negotiation of agreeing the necessary work with the insurer, for whatever cost, and us taking a settlement from them doesn’t negate the need for us to move out whilst the work is done, which is covered in our policy and would be the case if the loss assessor contractors did the work? 

DullGreyGuy

You need to speak to the loss adjustor to see if the agreed value is inclusive or exclusive of AA or not. Normally it's all or nothing in terms of own contractors -v- the insurers suppliers; they generally dont want to pay endless AA because you hire some friends that do it at mates rates but take 3x the length of time because they are doing it around their regular jobs

wanttobedebtfree85

Thanks - the AA that they have sort of already approved is a short term 6 month lease on a private rental, which is more time than it would take, but is still the cheapest option in London.  I’ve asked the question (amongst others) from my loss assessor, it’s just that speed is not one of his virtues! 

DullGreyGuy

wanttobedebtfree85 said:

Thanks - the AA that they have sort of already approved is a short term 6 month lease on a private rental, which is more time than it would take, but is still the cheapest option in London.  I’ve asked the question (amongst others) from my loss assessor, it’s just that speed is not one of his virtues! 

Loss Adjustors are like many jobs, their work comes in peaks and troughs and in an ideal world they get an even mix of each so are fairly busy all the time but in reality somehow peaks always manage to align so they endup trying to spin too many plates and hence slow replies etc. 

When I was in the technical department of a claims team I would typically have up to 600 open claims in my name at any time (many more than a loss adjustor will have) but the consequence is always having to refamiliarise yourself with the file. 

It's unfortunate that insurers decide to be creative with job titles too... a Loss Adjustor works on behalf of the insurer; a loss assessor works for the policyholder. I won't say one is to maximise the claim and the other to minimise it because the later is certainly untrue (in fact many are independent and are technically incentivised to settle for higher amounts because how their fee structure works)

You just need to have a conversation with them and what happens if works over or under run etc. 

wanttobedebtfree85

Thanks - that’s very helpful!