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Property/DIY

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Is cash settlement a good idea?

10 replies

TreeHelp · 20/09/2019 17:54

Looking for advice/experiences...

Our house has been affected by subsidence, caused by a neighbour’s trees. After a long delay, the neighbour has at last agreed to having the trees removed, and we are awaiting the tree surgeons.

Now the insurance company have moved onto thinking about repairs. They have offered us the option of cash settlement instead of going with their own contractors. I have no idea if this would be better. Almost every room in the house needs to be replastered/repainted, external repairs including repointing, repairing lintels, door frames repaired, doors refitted etc. It seems like a big job!

I’d be really grateful if anyone could advise - very much in the dark here!

OP posts:
Alexalee · 20/09/2019 18:37

Depends how much cash... if you take the cash and the damage is more extensive and costs more to fix it's on you. Unless you have a very good builder you trust I would leave it to the insurance company

HugoSpritz · 20/09/2019 18:40

This reply has been deleted

Message withdrawn at poster's request.

TreeHelp · 20/09/2019 18:55

I don’t have a builder, no.

I’ve also read things to suggest that cash settlement is generally minus VAT, so you are 20% down on costs anyway.

What I can’t understand is (a) what’s in it for insurance companies to offer a cash settlement and (b) what’s in it for a homeowner to accept an offer?

OP posts:
Jada1234 · 20/09/2019 20:30

I would go through my insurance for peace of mind.

HypatiaCade · 20/09/2019 20:33

Some people take a cash settlement and do something different, a major extension etc.

TreeHelp · 20/09/2019 20:59

Seems pretty unanimous so far

OP posts:
Grumpyunleashed · 20/09/2019 21:27

I would get insurance company to do the work.
They will use a reputable contractor and if god forbid they pig it up, I assume you would still have a claim against company for them to get it right.
If you chose a contractor and it goes wrong, then it may very well become your problem.

VictoriaBun · 20/09/2019 21:32

I wouldn't want a cash settlement. Once the work commenced, what would happen if it's more serious ? You might find yourselves out of pocket . Also is there a chance you could ask for temporary accommodation ? It sounds like it will be a nightmare to live in the property whilst the work is carried out.

TreeHelp · 20/09/2019 21:36

They’ve said they will do it one room at a time, so will be relatively contained I suppose. I guess we could ask for temporary accommodation - not sure what would be best with a baby and a toddler though! Better to stay at home with all the toys etc or move out of the mess?

OP posts:
Alexalee · 20/09/2019 23:03

Staying would not be an option... drags it out and dust and mess gets everywhere... it will be hell

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