What happens when you make a Home Insurance Building Claim?

Answer:

Read your policy booklet

Under most Home Insurance Policies there is a Condition where it sets out how Your Insurers will settle your Home Insurance Building Claim a typical wording is as follows

We can choose to settle your claim by replacing, reinstating , repairing or by payment and. If we are able to replace property payment will be limited to the cost of replacement by our preferred supplier.

What  will we pay for 

• The most we will pay for loss or damage arising from one incident is the building sum insured shown in the schedule
• We will not pay for reduction in market value of the property after the damaged parts have been repaired or replaced
• We will not reduce the sum insured by the amount paid under any claim

The option as to how your claim will be settled is therefore Your Insurers however you do have a say in the process. If you prefer to use another contractor other than the Insurers preferred supplier then  you could obtain quotations from other contractors. Most Insurers will allow you to use other contractors however the maximum amount they will contribute to the costs of repair is the amount their preferred supplier would have charged

The maximum amount your Insurers have to pay is the Building Sum Insured included in the schedule. Even if the cost of repairs exceeds the sum insured Insurers have no liability for the additional cost. This can prove problematical particularly in Listed and Period Properties. The sum Insured should reflect the full cost of rebuilding your property including an allowance for demolition debris removal and fees. However there are occasions when if  half the building is affected the cost of repair of the damaged  half could exceed the sum insured. In particular in calculating the Building Sum Insured no allowance is made for VAT since new residential properties are VAT exempt however repairing properties always attracts VAT.

In the circumstances it is always worthwhile ensuring that you adequately review the level of the Building Sum Insured and if necessary make additional allowance in the case of Listed or Period Properties.

The Building Insurance Policy is a Policy which assists in repairing / reconstructing damage. Your Insurers have no liability in the event that there is a reduction in market value following repairs. This is particularly significant in the case of subsidence / heave claims when the property may be repaired but blighted because it has been affected by subsidence with a subsequent effect upon its market value.

Larger or Complex Claims

In the event that you suffer a significant loss then it is likely that a Loss Adjuster will be appointed by your Insurers. They will attend and obtain necessary information to enable them to Report to Insurers and confirm that Policy Liability is accepted.

They will suggest that you appoint a Surveyor or Architect to produce a scope of repairs to be agreed with them prior to Contractors being asked to tender for the remedial works.

If you are uncertain as to the name of a Surveyor or Architect seek the assistance of the Loss Adjuster.

Although they will not recommend any particular company they will be able to supply names of parties with whom they may have dealt with in the past.

Alternatively speak to friends family and colleagues and see if they have any recommendations.

The names of Architects and Surveyors in your area can be located by pressing the links below

Surveyors

Architect

The Loss Adjuster will agree emergency works with your representative and will be involved during the repairs.

Alternative Accommodation

If you are unable to live in the property whilst it is being repaired the Insurance Policy provides cover for reasonable Alternative Accommodation.

Initially if you are unable to live at Home and you are unable to live with friends or relatives you should make enquiries with Local Hotels or Guest Houses. Get details of the costs involved and agree these with the Loss Adjuster.

The Insurance Policy will cover the cost of this accommodation and will probably also pay for the cost of meals. A deduction may be made to reflect your normal living expense. The Policy will not cover bottles of wines newspapers or other non essential items.

If you need to find Alternative Accommodation for a longer period then you will have to make enquiries with Local Estate Agents to see what is available. View the properties and get details of monthly rentals. Ensure that you agree the costs with the Loss Adjusters prior to entering into any Tenancy Agreements which are normally on a 6 month basis.

The Policy will pay for the Monthly Rental together with any costs involved in organising the Tenancy. You are entitled to seek Alternative Accommodation of a similar standard to your own home.

In the event that you have Contents Insurance the cost of Alternative Accommodation will be shared between the Building and Contents Policy

Warning

It is important when submitting and progressing your claim to ensure that all information is accurate and that bona fide quotations are submitted for works to be completed. In the event that there is any indication of fraud on your part then you risk Insurers refusing to deal with any aspect of your claim.  Insurers may also refer the matter to the police for investigation.