In 2009 when Ireland and the world was in recession, Insurance companies became concerned about the escalating number of property damage claims. To counter this, they decided to use their own builders to do the repairs and these builders would be paid directly by the insurance company. The excess on the policy is then paid by the policyholder (home owner) directly to the builder. These builder network schemes had worked well in the UK. The schemes became unpopular when policyholders were just not satisfied with the quality nor speed of workmanship and eventually the schemes receded within a few years. Prior to 2009 Insurers very rarely exercised this option. They would enforce if they felt there was an element of suspicion about the claim. I acted for a client one time who had a €90,000 contents claim following a break in circa 2005. Insurers were concerned but had a supplier who could replace 70% of the items and they did. The rest of the claim was paid in cash.
The typical wording in the policy goes as follows under the heading.
‘How we settle claims’
‘We (the insurance company) will decide how to settle your claim. We normally arrange a builder/supplier to repair reinstate or we may decide to pay a cash amount for the loss or damage’. The wording is very clear and has survived legal challenges despite how unfair people feel about this. Thankfully the normal practise in Ireland now is to settle by a cash payment. Although a retention may be held until.
I received a call recently from an old friend in Los Angeles who has a house in Malibu whose house had been damaged by the wildfires. His excess on the policy was $50,000 US and the insurance company want to use their builders for repairs. I hated being the bearer of bad news to say that there probably was wording in the policy to support insurers stance. I checked the policy and there it was under.
‘Settlement Options’
- (a) Repair…
or
- (b) Pay a cash amount…
Clearly these policies and the way they’re written is on a global basis.
If you have a property claim, have it professionally assessed. In Property Claims Loss Assessors Ltd we are Engineers and Building Surveyors with over 20 years’ experience. We assess fire, pipe leaks, storm, flood, subsidence and break-in damage, etc. Our first survey is free and we are a ‘no win no fee’ company.
Call us:
ROI: Land 01 5620082 Mob 087 6165435
NI: Land 028 95212991 Mob 077 95374150
Web www.pcla.ie Email info@pcla.ie
