Misconception when using 3rd party insurance

We quite often come across customers who are looking to make a claim for damage caused to their property by a third party. They believe this is the best option as it prevents them from making a claim on their insurance and increasing premiums. Well it’s not and I will explain why later.

One of the most common is lack of care and attention when fitting supply and waste pipes to a new washing machine. Most of us when buying an appliance like this will pay the premium for it to be installed by the guys delivering it. We find the supply pipes often get squashed when the washing machine is pushed as far back into its position as possible so its flush with the other units and worktops. Often these pipes will start leaking immediately but it can often be a drip that goes unnoticed for some time and most of the damage is already caused before you notice it.

When this is investigated and found to be the supply pipes, more often than not the customer will call the supplier of the white goods and not their own home insurance.

Here are the reasons why you should always use your home insurance policy and not claim on the insurance of any third

You must inform your insurer regardless of making a claim

This is completely dependent on what your insurance requests is disclosed during, at inception and on renewal however it’s likely that under the conditions of your policy, you must tell your insurance company about any incidents which may or may not give rise to a claim. When you tell them about an incident, they may pass information relating to it to the registers.

Insurers pass information to the Claims and Underwriting Exchange Register (CUE) run by Insurance Database Services Ltd (IDS Ltd). Your insurance company will seek to recover their losses from the 3rd party so why would you want to fight that battle yourself?

You’ll get a much more comprehensive reinstatement works

3rd party’s settle on an indemnity basis only and won’t put you back like for like. 

For example; your property has damage to a kitchen, flooring and decoration. They will make deductions on the costs they will settle due to its age and condition. They’ll only replace items that are damaged and not the items that match it (see our matching of items blog) and other considerations like disturbance allowance or alternative accommodation are unlikely to be considered. By claiming from a third party you will be at a financial loss to return your property to its previous state. However, if you claim on your own home insurance then you are likely to get a much better settlement. No deductions are made for age and if the kitchen was in a good state of repair before the loss then they will replace based on the cost for new. You can also make use of alternative accommodation or at least be compensated if your kitchen is rendered unusable while works are ongoing.

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