insurance carpet settlement

[Tidsey]

Hi All

 

I had a leak in my flat which damaged the floor and carpet, so I had to move out for 2 months whilst they took the floor and plaster out. I got a call from the Housing Association giving me a moving in date I contacted my insurance they passed me on to renew carpets and they could only time they could visit was 2 weeks later to give a quote, problem was I had to move back in the day after they were coming.

I called my insurance and explained I have to have it fitted before I move in the advised it was ok it will be a cash settlement, I requested an email confirming this. It cost £1850 for all the floor covering from a small local carpet shop the flooring was about £14 m2.

I recieved a call from the insurance company saying that they were going to send me a cheque for £760 as my excess was £350. I advised them to hold the cheque as I wanted a breakdown of the costs. The quote sent was for a price £7.54 m2 and at the end of the quote they have two prices retail price total £1630 and scheme discounted price £1110. The carpet was fitted me when I first moved in as a moving in gift unfortunatly that person is no longer with us and I have no way of knowing which company fitted it but it was a really nice twist patter carpet I cant find it anywhere.

The HA have agreed to pay the insurance excess but I still dont have £700.

How can the flooring quote have a retail price £1630 and a scheme discounted price £1110 which is 32% different and on the discount price it shows discount of 10%

What can I do?

[unclebulgaria67]

Are you sure that the Insurers have not obtained a discounted price from your local carpet shop ?

 

The Insurers would normally settle based on the cheapest estimate they were provided with. Insurers can normally negotiate discounts with most carpet outlets. The Insurers would have to settle at a value that allows for the same quality flooring to be fitted.

 

I think if you have been quoted £14 M.Sq, that is a pretty expensive carpet. That would indicate a pretty heavyweight quality carpet.

 

You need to know what carpet/flooring was down originally and see what breakdown the Insurers can provide for their settlement figure.

[Mwynci]

Insurers will often use carpet specialists who can tell the quality and therefore cost from a sample, ask the insurer if this has been done and to double check the findings.

[manofmystery]

Insurance companies usually have deals with sellers as they will need large volumes of items so they negotiate a cheaper rate. If you ask for a cash settlement then they are allowed to pay you the rate they could of bought it for.

 

Source;

Chartered Insurance Institute

 

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