House Insurance Claim Paid In Vouchers

damagedgoods_2

I have recently claimed on housing insurance and the claim has been accepted for goods damaged behond repair. However the insurance company has advised me that they will not provide a cash settlement as stated in the policy they supplied but issue me with gift vouchers from a selection of stores of their choice. I really dont wish to replace my goods in such I restrictive way, what can I do? Gift vouchers were not mentioned in any policy I signed up for. Any advice?

aromaannie

this doesn't seem right or fair if it's not mentioned in the T&C's. COntact your local trading standards office they should be able to give you good advice

telly-addict

Try taking a look at this thread:
http://forums.moneysavingexpert.com/showthread.html?t=70960&highlight=insurance+vouchers
A discussion on the very same topic and a link to the latest views of the Financial Ombudsman Service.

damagedgoods_2

Thanks for the advice.
Though I have spoken to AXA insurance UK plc and they have agreed to issue a cash payment at a significantly lower value, due to the savings they make on the voucher scheme. The ombudsman helpline stated this was well within their rights as vouchers are considered a cash settlement!!! they are however willing to support my complaint, but based on the above imformation I do not hold out much hope.

damagedgoods_2

Thanks for advice this was really useful,yet the Ombudsman Helpline stated this was standard policy, and a lower cash payment being offered for turning down voucher scheme.

damagedgoods_2

Thanks I will try

telly-addict

You haven't indicated in your original post what was "damaged beyond repair". If the item(s) is capable of replacement, then I can see why they are insisting on replacement or cash vouchers. The latter is actually a fairly generous approach, as the policy wording will probably allow for a deduction for wear and tear if you don't replace the item. New for old cover is only available where the policyholder elects to replace the item(s) damaged.

payless

If you can get direct ( or as near as possible) replacement for the value given at their chosen outlet , then I can't see the problem ( in fact you will then have new items) - insurance is to put you back in a postion before the claim, NOT to be able to go out and purchase a different set of goods.

Seen one claim recently where accidental damage was paid our for a cooker , the insurer paid out Currys Vouchers for the list price ( less excess), the claimant then purchased the next version up, with extended warranty, delivered and fitted , with over £100 change given back by Currys in shop vouchers