Property insurance policies give you extra protection if loss or damage occurred to your property. If a fire or storm results in damages, you can make a claim on your insurance for compensation. While most insurance companies will meet honest claims fairly quickly, or at least settle them amicably, that may not always be the case.
For example, insurers may give you less than what you claimed for or reject it altogether. This post discusses what to do if you’re unhappy with an insurance settlement, highlighting what you can do to improve the chances of a successful outcome.
Can You Appeal an Insurance Settlement?
Yes, of course, you can. As long as you’re covered by an insurer, you have legal consumer rights to dispute an insurance settlement. If you want to appeal, you could:
Hire a Loss Assessor
Hiring a loss assessor removes the burden of the claim’s management process from you. A loss assessor assists you with the business or home insurance claims process from start to finish. While you might be familiar with the details of your home insurance cover, loss assessors know the process inside and out.
They understand how to mitigate problems and negotiate with loss adjusters. So, what’s the difference between a loss assessor or loss adjuster? A loss adjuster, unlike a loss assessor, works for the insurer.
When you make an insurance claim, a loss adjuster will review your insurance policy and make “adjustments” as necessary. A loss assessor understands your consumer rights and knows how to prove unfair insurance claims until they’re settled.
Check Your Policy Documents
Check the details of your insurance documents to see if the facts fit the reason for rejection.
- Check that you provided all the correct information in the application for your cover
- Note down any wording in your policy cover that you think supports your case
- If the wording is poorly explained or ambiguous, point that out, too
- Note that an insurer will have difficulty rejecting your claim if you took reasonable care to answer all their questions to the best of your knowledge. If you notice a recent change to the rules, note that down as well.
Write a Formal Complaint Letter
Once you’ve established that your insurance policy covers your complaint, lay it out in a formal letter to your insurer. The letter should provide details of your complaint, say what you want them to do, and give them a time in which to reply. Don’t forget to keep a copy of your letter and have records of any correspondence as evidence.
If you’re not satisfied with the insurance company’s reply, you can make a formal complaint using your insurer’s complaints process. Look at your policy documents or check your insurer’s website for details on how the complaints process works. Provide clear information that you have a dispute and that you’re sending a complaint.
You can typically expect the insurance company to respond to your complaints within about a month. Once you get their final response, or after eight weeks, if you still disagree with the outcome, you have the right to take your complaint to the Financial Ombudsman Service (FOS).
Go to the Financial Ombudsman Service
The Financial Ombudsman Service is a free and independent service that investigates complaints from individuals and small businesses about financial companies.
The Financial Ombudsman Service will consider the circumstances, examine the documentation, and try to find a fair outcome. If they decide your insurer wrongly rejected your claim, the Financial Ombudsman Service has the power to make the insurer pay compensation or take appropriate steps to change the outcome.
The Ombudsman’s decision is final and binding on the insurance company. If you’re still unhappy with the outcome, you still have the right to go to court.
Beware of Time Limits
It’s crucial that if you disagree with an insurance insurer’s decision, you start the dispute process as soon as possible. For instance, you can take your complaint to the Ombudsman within:
- Six months of receiving your insurer’s final response.
- Six years of the event that you’re complaining about. If it’s more than six years from the event, you can send your complaint within three years from when you knew or could reasonably have known you had a reason to complain.
- You can still refer your complaint outside of the time limits. The Ombudsman may still investigate the complaint as long as your insurer doesn’t object.
Get an Independent Assessment from a Loss Assessor
If you’re dealing with a technical or large claim, consider getting an independent assessment. A large claim can involve numerous complex issues. Contact a loss assessor to look into the damage and send their report to your insurer as evidence.
The report might not change the insurer’s mind, but it might be helpful later on.
What Are the Common Insurance Complaints?
Unfortunately, insurance complaints are common. Insurers exist to make money, so paying out all claims is not in their best interest. For example, insurers typically invest the money paid in premiums by account holders in interest-earning accounts.
It’s not uncommon for an insurance company to delay payouts to make as much money as possible. Common issues include:
- Unreasonable delays in processing or the insurance company not responding to claim
- Unsatisfactory settlement/offer
- Misrepresenting aspects of a policy or claim in an attempt to delay the process. Eventually, you may accept a lowball offer or drop the claim.
- Adjuster handling – poor service or implementation of established claims processing and investigations.
- Denial of claim
What Is a Cash Settlement for Insurance?
What Does Cash Settlement Actually Mean?
A cash settlement means your insurance company provides you with a cash payout to cover the loss or damage incurred. A cash settlement, however, may not always be the most favourable for a property owner. The insurance company will not give you the cost of VAT on repairs, so the cash settlement will have an instant reduction in value.
You may opt for a cash settlement if you want to carry out the rebuild yourself or if you’re significantly underinsured and choose to put the money into priority repairs. Another reason to opt for cash is if you want to sell your home without any repairs. That means you’ll have to take a lower sale price and have a cash settlement rather than rebuild yourself.
Alternatives To Cash Settlement
Some owners opt for the insurance company to cover repairs and replacement costs of property and damaged contents. In this situation, you can appoint any contractors or service providers to restore your home to its pre-damaged state.
In most cases, claims will be settled by a combination of building and contents repairs and replacements and a final cash payment.
Conclusion
If you disagree with your insurance settlement or have insurance claim problems, you now know how to file a claim against an insurance company or lodge a dispute against a settlement. You don’t need any special help or support to make a complaint. Any insurance consumer or customers can speak for themselves and give their own account about any insurance problems UK has to offer.
The Ombudsman Service is also free. The claims management process, however, can have many little details you don’t want to miss. Consider engaging a qualified assessor in the early stages of your claims process for insurance claims advice. That way, you can have a professional handle the legalities and provide advice on your situation.
A loss assessor has the knowledge to give expert advice, speed up the claims process, and maximize your settlement. They know how insurance companies investigate claims and can handle everything, from filling out paperwork to negotiating with loss adjusters, meaning you can enjoy much-needed advice and peace of mind. An assessor can also help your secure emergency payments from your insurance company.
You may be wondering what a loss assessor costs. The short answer – it depends. You may agree on a cash settlement of the claim, pay a charge, or spend nothing.
Should you choose to appoint your loss assessor’s recommended contractors to repair your property, some assessors will waive the fee entirely. In this situation, their contractor will cover the management fee, so their services will cost you nothing.
Are you unhappy with your insurance settlement or need legal advice? Contact us at Property Claim Assist for professional insurance mediation services and legal advice on insurance claims today. Our experienced team of insurance claim consultants will make sure you get the compensation you deserve from your insurance claim. Call us today at 0333 577 2720 for a free consultation or advice.
