Insurance Company “Cash Settlements”

Have you suffered Flood Damage, Fire Damage or indeed Water Damage to your property?

Has your insurance company sent a representative around to produce a Schedule of Works in respect of the reinstatement works required?

Are you concerned about the Schedule of Works produced?

Has your Insurance Company asked you if you would like a “cash settlement” in respect of the works required?


We are receiving more and more enquiries from unhappy policyholders that have been asked if they would like a cash settlement, they feel bullied and forced in to a corner and feel manipulated. The insurance company has restricted any cash settlement to “what we can get the work done for through our approved network”.

What our clients soon became aware of was the “cash settlement” offered was substantially less than what they were being quoted by local building companies. Basically, the Policyholders could not get the reinstatement works done for the “Cash settlement” offered, or indeed paid, on some cases. When they returned to their insurers they were advised that because they wanted a “cash settlement” it would be restricted by insurers to “what we can get the works done for by our approved repairers”! The insurers had not offered to carry out the works but were prepared to settle at this figure.

When building contractors apply to join insurers “approved contractors” panel, they are sold the idea of receiving lots of work reinstating policyholder’s houses. The deal is that the insurance company will provide the contractor with lots of work, but the rates paid are very low based on the volume of work, basic business really. Insurers however have stepped over the line by applying these rates to “cash settlement”. So, the question is this. Why would any policyholder accept a “cash settlement” offered by an insurance company when the work cannot be carried out for this sum?

The Financial Ombudsman Service have issued strict instructions to insurers that if they offer a cash settlement and are not prepared to carry out the works themselves, then the cash settlement must be based on “Open market rates”.

If you have been offered a “cash settlement” or asked if you want a “cash settlement” by your insurance company for your claim, stop, take a breath and CALL US NOW on 0800 3284188, we will be able to assist.

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Thames Valley

Suite 220, SK House, Vansittart Estate, Windsor, Berkshire, SL4 1SE.


Suite 220, SK House, Vansittart Estate, Windsor, Berkshire, SL4 1SE.

Jane Smith

Regional Director at Thames Valley Office

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