Total loss insurance claim

[powerpack]

Here is my sad situation - my house burnt to a shell ( fire brigade took half an hour to arrive). We all got out (TG). I am under insured slightly - but my policy shows additional benefits like debris removal and alternative home , etc. Does anyone here know if these "additional benefits" will come from my total insured amount or are they in fact "additional benefits".No straight answers from the adjustor or the insurance company. I dont want to employ an adjustor who will eat up to 10% of my claim (just yet). I have also been told no average clause will be applied. If anyone has been in the same situation or has any advice -I would be most grateful.

 

[CCOVICH]

That's an interesting question. Cover would be for rebuilding/reinstatement, so I would take 'additional benefits' to be just that-benefits additional to the rebuilding cost-but that's just my own view.

Does your policy not clarify matters on its own?

 

[Ravima]

policy wording should cover this. ususally sum insured includes demoval of debris, hence the reccomendation to increase teh sum insured by anout 15% to include that.

alterative accomodation is usually an extra, about 10% of the sum insured on buildings and in some cases also contents.

have you a broker or do you deal direct? if ou have a broker, he should be able tohelp, if you deal direct, then contact your local office contact and seek assistance.

 

[Solutions]

The insurer's loss adjuster will always tell you that you are under-insured. It is their opening gambit and it normally works. I suggest that you get some good advice from an insurance expert, as this is likely to pay for itself 10 times over!

Best of luck and i hope that all goes well for you.

 

[Bgirl]

well if the average clause is not applicable then you don't have to worry about being underinsured.

 

[delgirl]

Sorry to hear about your loss powerpack.

We had to use an Insurance Loss Adjustor/Assessor in the past and he was certainly worth the fee. We were also told we were under-insured etc., but the insurance company's stance changed quickly once he got involved.

This should prompt homeowners to check that their building insurance is adequate to cover rebuilding, site clearance etc. in the case of such a tragedy.

There's a Society of Chartered Surveyors Guide to House Rebuilding Insurance (2005) [broken link removed], which is very informative - particularly the reference to 'the Average Clause'.

 

[orka]

well if the average clause is not applicable then you don't have to worry about being underinsured.

The issue of the average clause does not apply with a total loss so it not applying is no guarantee that the OP is not under-insured.

To the OP - what makes you think you are underinsured? Have you received a quote for site clearance, rebuilding etc. that is greater than your sum insured? DOn't forget it's the rebuilding cost that should be your sum insured and this will often be way less than market value. And if you think you are only 'slightly' underinsured, it may be possible to get a different rebuilding quote and/or maybe a slightly smaller house that would enable you to rebuild at no loss to yourself. Good luck.