Hi there,

I'm currently in the process of a home insurance claim and would be very grateful for advice on certain aspects.

The claim was initiated following an escape of water and the result is that the ground floor at my property requires replacement and a room needs partial redecoration.

A Loss Adjuster visited my property following the claim and, along with estimates for the main works, requested that I also provide estimates for removal and storage of my contents to the whole of the ground floor of the property in order to facilitate the works.

I should highlight here that the need for removal and storage estimates only became apparent/accepted AFTER I raised the fundamental need to clear the area to allow for flooring works.

Having submitted estimates for all aspects of the work the Loss Adjuster has responded with approvals (on which subject I have other queries which I'll pose in a separate thread), however they have also advised that they will be appointing their OWN contractor to manipulate my contents.

So to the questions...

Q1) Am I obligated to use the insurers contractor for removal and storage of my contents, or can I insist on using my own local contractor?

Q2) If I use my own contractor can the insurers impose (financial) conditions on this?

Q3) Given that the removal and storage of my contents includes a freestanding fridge freezer, am I entitled to claim for any food items contained?

Q4) The timescales for the work are presently undefined. My existing flooring needs to be removed and the exposed area completely dried out before any new flooring is laid. Depending on the situation when the flooring comes up, this could potentially take 1-2 weeks. Are the insurers obliged to provide Alternative Accommodation during the period of works?

Any advice on this greatly appreciated.

Thanks,

Hello and welcome to CAG.

I expect our insurance specialists will be along later.

In the meantime, you might care to have a read around the forum. I remember several threads from not too long ago about accepting the insurers workmen or using you own.

My best, HB

Thanks Honeybee - have had a brief browse through the CAG forum search function but can't find anything specifically addressing my concerns, however will keep looking. Meantime, hope it's ok if I also post a separate thread relating to this with further queries.

Hmm, I'm not sure why you'd need a separate thread. Generally your queries are best kept together.

HB

Hi,

In relation to my other thread about a home insurance claim (Home Insurance Claim - Contents Removal and Storage), I have some additional queries on the subject of contractor appointment and using settlement money.

My claim involves an escape of water that has damaged my flooring and which will need replacing.

I obtained 2x quotes from local, personally sourced contractors and these were submitted for approval.

The Loss Adjuster assigned to my claim responded with approval and has specified the approved quote value along with the contractor.

However, as part of the approval the Loss Adjuster has also advised that they will not enter into direct contract with a contractor and therefore will issue me a cheque on receipt of the final VAT invoice.

2 main topics arise at this point:

Issue of Monies

Q1) Is it standard/fair practise to expect me to outlay the cost of replacing the floor and then wait for a cheque to be issued from the insurance company to cover this?

Q2) Am I entitled to request the insurer provide a cheque in advance as per the approved quote? If so, is the insurer permitted to adjust the value or alter any terms by going through this approach?

Directly related to this...

Using/changing a Contractor whose quote has been approved

Q3) Am I now obligated to actually USE Contractor X, whose quote has been approved, or can I use a different contractor as long as the cost of the work is the same?

The flooring company whose quote has been approved only has a small selection of replacement wood floor (about 8 options) so I am now considering looking at alternative companies and tiles before I make a decision.

Q4) Am I required to replace the floor exactly as I had previously (Wood) or could I opt for an entirely different product (e.g. Tiles).

I think at the heart of Q4 is the issue of how and on what I am able to spend the approved quote...

The quote is for like-for-like replacement, but am I entitled to spend it on alternative products?

Finally, if I do NOT use Contractor X:

Q5) Am I entitled to request the insurer provide a cheque for the agreed quote and I can then spend the money at a different supplier?

Q6) Failing that, if a different contractor invoice is submitted once the work is complete can I expect that the insurance company will still process payment?

Hope this all makes sense and welcome any advice.

Thanks in advance,

Well, this thread is specifically about contents and removal/storage and what may be covered/conditional as part of that - and then I have broader questions about contractor appointment and settlement/payment of a claim which I felt would be clearer in a separate thread.

Please feel free to amalgamate or ask me to combine if you feel necessary.

Multiple threads are rarely helpful for the people who try to advise or later caggers looking for information. I see you have a new thread nevertheless and will have a look at it.

HB

Sorry, in my opinion post #5 is related to your first one.

Threads merged, please post your queries on this one.

HB

Sure - hope my intentions aren't misunderstood; it's just that within an insurance claim there can suddenly exist many areas (dare I say threads?) of query and possible advice that span disparate aspects so it often feels easier to segregate these mentally...and literally.

You can use your own removers/storers provided the cost does not exceed the Insurers contractor. If it does, then you will have to pay the difference. Ask the loss adjuster about this.

Read your policy re Frozen Food, as there will be terms and conditions that apply. The loss adjuster will seek to avoid any claim for this, by making sure that the freezer cannot be moved elsewhere to be be plugged in to stop thawing or whether the food can be moved to temporary frozen storage. Ask the loss adjuster about this.

You can use your own selected contractors, but you will then be responsible, if the works were faulty. If you used the Insurers contractors and works were faulty, then they Insurers would have to pay relevant sums to be rectify the works if necessary. Again you would need to submit details of contractors quotes and they loss adjusters may want to pay them directly. They won't pay more than Insurers contractors, so you will have to pay any extra involved, if you use your own contractors. Speak to loss adjuster.

You can replace the flooring with whatever you like. You would just have to pay the relevant extra amount, if it was more expensive, than the cheapest quote to replace with the existing floor material.

Loss Adjuster will want to pay contractors directly, so you cannot pocket any savings in cash. Some policyholder ask for cash settlements, so they can negotiate 'mates rates' or a cheap deal, so they can make money from the claim.

Alternative accommodation will only be considered if the property is totally uninhabitable. The Insurers will not be bothered, if you have to live in one room, don't have access to a kitchen, as long as you can get by and have access to basic facilities such as a bathroom. If the water will be off for a day or you don't have access to any essential facilities they may pay for temporary B&B accommodation and a daily food allowance.

All of these issues must be discussed with the loss adjuster and if you are unhappy with what they are advising, then speak to the company your policy was arranged with. Loss adjusters have responsibility to keep claims costs to a minimum and they won't want to mess around. If you are unhappy then your Insurers claims dept may have more authority about the claims costs, as they will be the ones that foot the bill for the claim.

If I can put this in a friendly way. I can tell from your posts, that you are an Insurers idea of a nightmare customer, who does not really want anything that the Insurers are offering in regard to contractors etc. If every customer wanted to arrange their own contractors for each part of a claim, it would be a total pain in the *ss. Insurers have contracts with major contractors to keep claims costs lower, so they can try to keep premiums lower. Having worked in Insurance claims for a period, I would say that most customers were happy with contractors and most of the time the customers could not obtain like for like quotes that were as competitive.

Further to UB's excellent post, the Insurers will want an invoice from any contractors (Preferably a VAT Invoice) generally before they make payment, they will normally issue payment within about seven days of receiving the invoice.

If you use your own contractors they will normally check up on them eg google them to ensure they exist and often ring them.

If they discover any false invoices they may be able to deny paying the entire claim and will certainly decline to offer renewal which will make it very difficult for you to obtain Home or Motor Insurance.

Contractors are used to dealing with Insurers, they will not normally expect you to make payment but will allow a couple of weeks for the Insurer to pay and generally inflate their quotes to reflect the delay in receiving money.

They may be happy for you to replace with different flooring etc, this is something you need to speak to the loss adjuster about, he will normally need to see quotations for the alternative materials and possibly a quotation from the same supplies on the basis if replacing with the original flooring.

Insurers will normally make payments direct to the suppliers to avoid the potential of fraud eg the client pocketing the difference between the actual cost and what the Insurer pays

If you want to use alternative supplies, the Insurer will normally require to see a quotes from the alternative suppliers and would then make a cheque payable to them, they will require to see a VAT invoice.

The Insurer may well expect you to use as much of the fridge / freezer contents up as reasonably possible as I assume you will have plenty of notice of when work will start, assuming you're staying in the property they would normally just move the freezer to another part of the house.

Basically you need to speak to the Loss Adjuster about all of your issues as they are your point of contact and will be authourising payments, your current strategy may result in the claim taking a lot longer than it normally would