Fire claim - insurer pays at last!

[kristaje]

Hi All,

Some of you may remember a previous thread by myself regarding fire in IP related to tenant. I subsequently removed the thread as the matter progresses with the insurer, but I'm happy to say that the insurer had agreed to pay the full insured sum + loss of rent + mortgage discharge fee (if we decided to pay our mortgage) today!

It was such a long drawn process that took 2 months and 2 days from fire event to decision, with the involvement of financial ombudsman (FOS). The FOS can only progresses with a dispute 45d after it is lodged, but it was amazing to see how fast the claim progresses once they are involved!

Many thanks especially to Brettc, Marg and Shaheen - for all the advise during the challenging period. You guys rock!

What I learned from the experience:
- don't just take 'no' for an answer, equip yourself with knowledge and fight for your case.
- learn from knowledgeable people in SS. there is so much of knowledge pool here, it's amazing!
- check your insurance coverage. things do go wrong sometimes, so make sure you're covered.

 

[Coconutwheels]

Hi All,

Some of you may remember a previous thread by myself regarding fire in IP related to tenant. I subsequently removed the thread as the matter progresses with the insurer, but I'm happy to say that the insurer had agreed to pay the full insured sum + loss of rent + mortgage discharge fee (if we decided to pay our mortgage) today!

It was such a long drawn process that took 2 months and 2 days from fire event to decision, with the involvement of financial ombudsman (FOS). The FOS can only progresses with a dispute 45d after it is lodged, but it was amazing to see how fast the claim progresses once they are involved!

Many thanks especially to Brettc, Marg and Shaheen - for all the advise during the challenging period. You guys rock!

What I learned from the experience:
- don't just take 'no' for an answer, equip yourself with knowledge and fight for your case.
- learn from knowledgeable people in SS. there is so much of knowledge pool here, it's amazing!
- check your insurance coverage. things do go wrong sometimes, so make sure you're covered.

Glad to here that it worked out for you!

What was the insurance companies excuses for not wanting to pay out?

 

[kristaje]

Thanks Coconutwheels!

The insurer said that because the fire was related to tenant dispute, they would only pay malicious damage and not the full fire cover. This was in spite of their pds specifically mention that fire by tenant / tenant's guest is covered. Below is excerpt for their PDS:

Fire
If loss or damage is caused by a fire.

Covered
fire.

Not covered
if the fire was started with the intention to cause damage by:
- you, or
- someone who enters your rental property or site with your consent (this does not include a tenant or their guest) damage which results from scorching or melting when your rental property or contents did not catch fire.


I was offered the 10K malicious damage several times during the process, by a couple of their claim officers. When I pointed out the PDS they said that it'd depend on police investigation results - if fire happened because of a malicious act or accidentally, and this investigation could take months! - and I still needed to keep paying monthly mortgage on the IP.

As per suggestions from some SS-ers, I argued that it should be covered under fire event and it's irrelevant whether it was maliciously lit or not, as their PDS clearly stated. I ended-up involving FOS, and within a week of the FOS formal intervention (which could only happen 45d after complaint to FOS is made) the insurer decided to pay the full amount.

It's been a rather traumatic experience really, as I always think that insurer will honour their policy when it's due, but obviously this is not always the case.

Since then I've been reviewing my policies quite closely, and noticed that the insurer I used charges excess for every item that I claim, rather than once per claim. This, together with the recent bad experience, made me decide to change all my covers to other insurer as they become due.

It's a bit long there, hope it could help someone that may experience the same situation.

 

[luckyone]

Which insurer were you using? Please PM me if you don't want to put it out in the open. Just want to make sure I don't have the same problem.

 

[Coconutwheels]

Well a good outcome eventually! I guess they just have a crack and see if people go "oh well to bad for us".

When my father had bowel cancer and then liver cancer his income protection insurer refused to pay too. Went on for a while back and forth, eventually after a letter from the solicitor they just started paying.

It's quite amazing the lengths they go too trying to avoid the larger claims!

 

[marks]

Which insurer were you using? Please PM me if you don't want to put it out in the open. Just want to make sure I don't have the same problem.

I'm only concerned if it was one of the two major ones always discussed/used by landlords.

Cheers.

 

[kristaje]

Luckyone - I did mention it in my previous (deleted now) thread when seeking for advise, so I guess it's already in the open. It is one of major ones, which is a worry. it's NR**.

Coconutwheels - that is low. sorry to hear about your dad's experience. do you mind letting me know which income protection insurer is this, via reply or PM? we're dependent on dh income, so would like to make sure it's not the one we used. thanks.

 

[Coconutwheels]

Luckyone - I did mention it in my previous (deleted now) thread when seeking for advise, so I guess it's already in the open. It is one of major ones, which is a worry. it's NR**.

Coconutwheels - that is low. sorry to hear about your dad's experience. do you mind letting me know which income protection insurer is this, via reply or PM? we're dependent on dh income, so would like to make sure it's not the one we used. thanks.

I'll ask him, it was 10 years ago now!

 

[buster]

Two months isn't long, it is very quick Think yourself lucky Ive had it take up to 3 years.

 

[kristaje]

omg, 3 years! that's awful.
did you need to pay mortgage during those 3y when receive no rent?

 

[kristaje]

yay - $$$ is in today! taking 3w+ from when insurer decided to pay, and i'm still awaiting for info on access on the place (it's still being fenced by insurer), but i'm just so relieved to have the whole drama (almost) passed!