HOME INSURANCE CLAIMS
You’ve been burgled. Valuable and precious things have gone. You call your insurer. And you get sent a book of vouchers or a plastic gift card to spend in shops you have never visited to replace the things that are missing.
What rights do you have to demand money?
Insurers prefer to give you cards and vouchers because it is cheaper for them. They do a deal with the shops on their list to charge them less than the full price. So if you have lost a camera worth £300 and buy an identical one the shop may charge the insurer just £225 when the sale goes back for reimbursement.
They may even get a payment from the gift card or voucher firm. Some people never get round to using these payment tokens and that means they can sell them at less than full price.
So giving you a gift card or a voucher is much cheaper for the insurer than giving you the cash for the full price. Saving money on claims means that insurers can keep the cost of premiums down. And of course that benefits everyone who buys it.
If it is an electronic item or a camera it probably does not matter much where you get it from. But some things cannot bought at a High Street shop. If furniture is lost or destroyed then you have a right to insist on a replacement of the same quality.
An antique ring inherited from your grandmother is, literally, irreplaceable. And if you insist and can prove its value you should always be able to have the cash instead. Alternatively some insurers will offer a bespoke service to get old or treasured items reproduced.
The important thing to remember is that insurance should replace items ‘like for like’ – and with some policies for modern items, ‘new for old’. Check your Terms and Conditions to see what they promise.
It is helpful if you have a list of the valuable things you have insured. And always keep receipts. Photographs are useful too, especially for things that are old or precious. And if you can keep these somewhere outside your home they will be available even if you have a fire or flood. You should also always ensure that your contents are insured for the correct value. If they are not then the insurer will scale down your claim.
If you have any problems, then complain in writing. If that does not produce a result you can go to the Financial Ombudsman Service. The Ombudsman expects 385,000 new cases this year – 29,500 of them about insurance. So it may take some months to reach a settlement. But eventually you should get what you are entitled to.
Go back to Paul Lewis front page