Home buildings insurance-what am I entilted to?

Question

I live in Hull, UK and my area was badly flooded in summer 07. Those worse affected moved out straight away as their homes were unliveable and the builders moved in. We agreed with our loss adjuster to wait until after Christmas to start on our house. Even though we have no flooring and there is mould all over. Now we are ready to move out so the work can begin but the loss adjuster says we can't live in a hotel because it will cost to much (4 adults 1 dog) we know there are no homes to rent that would take a dog, all are full. We may be able to have a caravan in our garden but he said we will not get the 'disturbance money' my neighbours are getting (ie £10 per day per person, plus money to cover laundry). The people are getting the money to eat out. You can't cook for a family in a caravan for 6 months. I wanted to know what I can expect to be intitled too and can I insist on a hotel?

Answer 1

Hi there,

I'm sorry to hear of your predicament following the flooding in the Summer.

It is hard to give any sound advice without knowing exactly what your policy cover includes. On either buildings or contents insurance there will usually be a cause covering alternative accommodation. This could be either a flat rate fee although its is far more likely to be a percentage of your buildings or contents sum insured, usually upto 20%.

You need to contact the insurer's claims dept and find out what you are entitled to. If what they offer does not satisfy you, make a formal complaint writing to the company. If this still not satisy you, you will then be able to contact the Ombudsman (the details should be in your policy booklet) who will make a decision that is binding on your insurer.

I know its hard to understand at this time, but unprecedented events over the Summer have made it incredibly diffcult for UK insurers but I know first hand that they will try to do everything in their power to hellp you.

Fozbah

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Answer 2

I would read the policy about the 'cost of alternative accommodation' clause - it does give you some benefit entitlement to (10% of the sum insured I think) and I would point that out to the loss adjuster.

You should mention to the loss adjustor that you feel that you are not being treated fairly by the insurance company over their attitude to the claim. Be sure you use the words 'treated' and 'fairly'. You also have the right under FSA guidelines for the insurance company to handle your claim in a prompt and fair manner. (Below are the FSA TCF guideline)

We have defined six consumer outcomes, which explain what we want TCF to achieve for consumers.

Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.

Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.

Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.

Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.

Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.

Outcome 6: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.

Pick your Outcome.

You should also look at the FSA guidelines on claims handling http://fsahandbook.info/FSA/html/handboo...

Answer 3

It will depend on what you insurer is willing to pay.  This may be stated in your insurance policy - i.e. up to £100 per week, or may be phrased as "reasonable costs".  If the latter then you have to negotiate as to what is reasonable in this highly unusual circumstance.