Following UK Home Insurance Market in Claims Settlement following Natural Disasters
Insurance companies operate on more-or-less the same policy guidelines in all countries. An analysis of housing insurance market trends in UK reveals critical insights into the US scenario. If your house suffered extensive damages from natural disasters, you must know the procedure of retrieving insurance money. Homeowners usually expect replacement items or a compensation cheque. However, market trends indicate insurers may not choose either of the above options.
Generally, the insurer offers different insurance settlement options, especially to the ‘high net worth’ customer category. The options presented include the costs of repairing a damaged home, the provision of standard replacement items, or cash dispensation. However, the leading companies always clarify that it is up to their discretion into deciding the medium of settlement. The replacement option may not necessarily mean you get a new item. Instead, the company may present you with a voucher to buy from the network of ‘preferred suppliers’ enlisted by the company.
The vouchers system entails discount benefits for the customer. The insurance company negotiates a healthy discount rate owing to a longstanding commitment with the retailers. Customers can benefit from up to 35% discounted prices on the face value of the voucher. The retailer connections depend exclusively on the insurer. Some companies connect with independent retailers while others maintain contracts with online chains or high street shops. Insurers might even have both options available for the homeowner. The voucher system enables customers to purchase their preferred items, or pay a little more than before and upgrade to a new product. However, it also includes some critical issues for the customer.
If customers claim the loss of an antique custom-made jewelry piece, obviously a budget retailer chain cannot recover the antiquity. Customers in such situations do not benefit from either option, using the voucher or buying from a high-street retail chain. As a result, the Financial Ombudsman Service regularly receives complaints from disgruntled customers feeling cheated by the insurance service. The ‘like-for-like’ plan offers customers the options to choose products in the same brand as the insured one.
The insurer may impose restrictions on this form of compensation even. It is important for customers to verify the insurance parameters before purchasing a new item. Even when you are buying a policy through a broker, check the different aspects of the insurance policy. The bottom line is, always look up the fine prints carefully before choosing a service. Read up the voucher dispensation system, and check whether the company is competent in handling the claims of costly household items.