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Insurance payouts - should I accept the first offer?

(8 Posts)
chocolatequeen Mon 01-Oct-07 16:21:08

I had 2 handbags ruined by our removal company, they were covered by our policy using the term *replacement at destination value* . I valued them at 750GBP, and therefore submitted the claim for that amount. Insurers have come back with an offer of 600GBP as deductions must be made for wear and tear. I´m not arguing that indeed they are used, but that the cost of replacing them (which I have to as they are totally ruined) would be 750.

If I argue that they should pay more, can they reduce their original offer?

chocolatequeen Mon 01-Oct-07 19:03:57

bump for the evening!

AnnabelCaramel Mon 01-Oct-07 19:05:24

Go back with a counter offer. Although they do seem to be quite generous actually.

RubySlippers Mon 01-Oct-07 19:07:04

when we claimed on our travel insurance we ddn't get the full amount back
deductions were made for all sorts, so think it is standard
you could ask though - no harm in that

SenoraPostrophe Mon 01-Oct-07 19:08:42

shock seven hundred and fifty quid for two bags! I hope they were gold plated.

re claim - "replacement at destination value" doesn't sound like "new for old" to me (the term that most insurance companies seem to use if they mean you can buy a new one), and 20% off for wear and tear does actually sound quite reasonable. maybe you could buy a normal bag and have fun with the change?

I don't know if they'll reduce their offer though.

chocolatequeen Mon 01-Oct-07 19:14:50

Thanks everyone.

Think will push it a bit and see what happens - worth a try! Not going to replace them SP - sadly, they were gifts from DH so it wouldn´t be the same anyway!! Will probably put money into savings account for a rainy day instead...

HappyMummyOfOne Mon 01-Oct-07 20:14:59

I work in insurance and thats a good offer so I would accept it. Some companies deduct 20% depreciation per year based on the items age on clothing etc. New for old policies never cover clothes/bags/shoes/linen for the new price.

If you were to challenge the payment you would have to provide proof that to replace your items with the exact same items - age, condition etc and not the new price would cost more than £600. Would they sell for more than £600 second hand? If not, I would just accept the payment.

chocolatequeen Mon 01-Oct-07 20:37:10

Thanks HMO1 - as you are an expert, think will take your advice!

Cheers smile

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