What Happens When you Make a Home Insurance Contents Claim?

Answer:

Read your policy book

Under most Home Insurance Policies there is a Condition where it sets out how Your Insurers will settle your Home Insurance Contents 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 content sum insured shown in the schedule
• We will not reduce the sum insured by the amount paid under any claim
• The most we will pay for Valuables are the limits shown in the schedule.
• We will not deduct for wear and tear other than household linen and clothing
• We will not pay for the cost of replacing any undamaged parts of a set a suite any other item of a uniform design or colour when damage happens to have affected a specific part within a clearly identifiable area and replacements cannot be matched.

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 obtain replacement contents from a company other than the Insurers preferred supplier then you should obtain quotations from you own supplier. Insurers may allow you to use another supplier however the maximum amount they will contribute is the amount their preferred supplier would have charged

The maximum amount your Insurers have to pay is the Contents Sum Insured included in the schedule. Even if the loss of contents exceeds the sum insured Insurers have no liability for the additional loss. If the loss only involves a number of smaller items, electrical equipment or carpets Insurers will use one of their preferred suppliers to replace the items.

Remember under the policy High Risk items or Valuables will be restricted to a single article limit and there will be an aggregate limit for all High Risk items and Valuables (Read the policy).

To submit a claim you need to make a list of affected items. It is your responsibilty to prepare a list not your Insurers. If you have previously made a Home Inventory then preparing a list merely requires reviewing the Inventory to establish items which are lost or damage. If you have not produced an Inventory you will have to start making a list. To help the Insurer progress the claim the following information should be provided

• Electrical Items`  Make of item , Model number Copies of manuals. Photographs
• Soft Furnishings Place and date of purchase purchase price receipts. Photographs
• Furniture Place and date of purchase purchase price receipts. Photographs
• Jewellery Place and date of purchase purchase price receipts or valuation. Photographs
• Computer Equipment Model Number Place and date of purchase purchase price. Any additional hardware or software added.

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 ask you to submit a list of affected items as above. Once received they will review the list and either agree a cash payment with you, agree that you can replace the item by your own supplier or alternatively arrange for items to be replaced by the insurers preferred Supplier.

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 Buildings 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 does not include any items which may not have been lost or damaged or to claim for excessive amounts when you know that this amount far exceeds the value of the item. In the event that there is any indication of fraud on your part it is not just the item for which you have made a claim but you risk Insurers refusing to deal with any other part of your claim. Insurers may also refer the matter to the police for investigation.