Contents Insurance help needed

Moneysimples

Hi,

 Ive only ever claimed once prior on my homes contents insurance so im expert, but it was straight forward - I paid the excess and they replaced like for like (TV).

Im putting in a claim for damaged carpet which isnt as expensive as a TV, but the companies cash offer seems unworthy?

Their cash offer is the 'original' price, minus the excess.

But obviously prices of everything have increased since the original price paid. So if im paying the excess to the insurer, that leaves me then paying that gap in the excess price again towards a new carpet, and THEN paying the increase in the price to replace like for like.

So its like me and the insurer are going halfs.

Could someone please explain is the purpose of insurance just to 'help you out a bit' - or should you just be paying the excess and the insurance replaces like for like? (New for old as I believed my policy to be)

Genuinely not sure what I should have expected, Im broke and dont have the money to buy a replacement carpet outright, thus I therefore dont have the money to put toward excess, gap the excess created and then some...

TadleyBaggie

Unless the policy is “new for old”, sounds like the insurance company is doing the right thing. 

BTW this is the wrong forum, nothing to do with reclaiming. 

CliveOfIndia

Moneysimples said:

or should you just be paying the excess and the insurance replaces like for like? (New for old as I believed my policy to be)

It doesn't matter what you "believe" the policy to be - is it "new for old" or isn't it?  Dig out the documents and have a look.

If it's not new-for-old and you can't afford a new carpet, what is the nature of the damage?  Is it something that could be hidden by a strategically-placed rug or bit of furniture, is it something that a professional carpet cleaner could sort out?  If it's a tear or something, might be worth asking around local carpet shops to see if they have anyone that can repair it.  Obviously, any of these options will be a poor second-best to a new a carpet, but they may be viable options if you're stuck with what you've got.

DullGreyGuy

If you cannot afford the excess then you should have chosen a policy with a smaller excess but that typically results in a higher premium (though not always due to negative selection). 

Did you ask for a cash settlement rather than have them appoint someone to replace it? Have you asked if they could simply replace it rather than give a cash settlement? 

You say you believe its new for old, you need to be able to state if it is or isn't rather than believing, if you can't work it out from the policy then ask them to confirm. 

Did you provide quotes for its replacement?