You may not have heard of Independent Inspectors, but if you need make a claim on your home insurance policy for new furniture, carpets or other types of flooring then many leading insurance companies in the UK use this company to assess your claim.
One of their representatives will come out and assess the damage and provide you an estimate, which will be the amount you can spend on replacing your damaged furniture or floor coverings. Independent Inspectors also have a network of Authorised Retailers who you can contact directly to spend your insurance mandate, which is great if you don’t have a preferred supplier.
At the moment there are lots of allegations in the carpet and flooring trade press that Independent Inspectors’ Representatives are insisting that insurance claimants go to Carpetright or Victoria carpets, or if the customer insists on going elsewhere offering a reduced payment amount. If these claims in the Carpet and Flooring Journal are true, then the representatives of Independent Inspectors are not truly independent and worse their actions are illegal.
So what actions can you take if you think you are being forced to use a retailer to replace items as part of an insurance claim.
What can I do if I think the amount offered by my insurance company is too low?
You will need to provide evidence that the amount offered is too low. If you have got the original invoice for the carpets, flooring, furniture (or other items) you could show them this. Items like floor coverings and furniture, unlike electrical goods have increased over time. If you haven’t got this evidence then get two quotes, from local “independent” retailers or a respected national retailer, for example John Lewis. Assuming these justify your claim that the offer they made is too low, then present these to your insurance company as evidence.
What do I do if I want to use my own carpet fitter or furniture store, for work that is subject to an insurance claim?
If you would prefer to use your own carpet fitter or furniture retailer this is not a problem. Neither your insurance company or Independent Inspectors can insist that you use their recommended suppliers.
Can the insurance company offer me a lower payout if I do not use their recommended retailer?
Again no, it is also illegal to offer you a lower insurance pay out if you go with your own preferred supplier.
What should I do if Independent Inspectors or my Insurance company insist I must use their recommended retailer?
If your insurance company or their representatives (for example Independent Inspectors) force you to use their recommended retailer or give you a lower pay out because you use someone else, they are acting illegally and in the first instance you should complain to your insurance company. If this doesn’t work then you should complain to the Finance Ombudsman.
What has the Finance Ombudsman got to do with Home Insurance?
All insurance companies in the UK are regulated by the FSA, therefore if your insurance company does not deal with your claims correctly then you can contact the FSA. The financial ombudsman ruled in October 2001, that it is illegal for insurance companies to force you to buy goods or services as part of an insurance claim from a specific supplier and they also said that insurance companies cannot offer you a lower amount if you don’t use their recommended supplier. More details of the Ombudsmans ruling on this matter can be found on their website at Ombudsman News October 2001 – Read the article “Repair/Replace or Cash”
Making an insurance claim is always very stressful because it means that something awful has happened in your home. On face value the service offered to customers by Independent Inspectors seems great as it saves you the hassle of finding a retailer. However if the allegations in the press are true then Independent Inspectors are taking advantage of insurance claimants at a very vunerable time in their lives.