Hi, asking for a friend. The story I have heard is my friend’s house got flooded during SA major weather event. They want a cash settlement for the damages. The reason is they want flexibility on own choice of builder, and repairs done at their convenience to minimise disruption. The insurer builder has done an assessment and have obtained quotes. Their insurer is asking them to get their own quotes for repairs if going down route of cash settlement, otherwise accept the insurance builders for repairs to be done asap. Builders reason is they don’t want clients from profiteering so they would pay out on the cheapest quote. My friend felt pressured to go with insurer builder.
My friend claim according to the pds there is no mention of clients to get own quotes for cash settlement. It does say the insurer will pay reasonable cost for repairs.
The insurer according to the pds can reasonably request information to help with claim process, which they are using to get them to get their own quotes. They think this is an unreasonable request.
My thoughts on this is BUPA general insurance is terrible by the sounds of it. Compared with CBA which in my experience gave cash settlements without customers getting own quotes. They just accept their assigned builders quotes. I just told my friend to just get quotes…
What are peoples thoughts on this.
How does the insurance company know what to pay out if they don't have a quote? So seem fair. I mean if it was a car, it is acceptable to get your own quotes for repair.
I've been down this path before, insurance company sent out a building company to quote, I then asked for a cash settlement, which they paid out what would have been paid to the builder.
Be aware that if you get paid out, then you can't double dip the insurance company again if the costs are more for the same piece of work. Open up the walls and find its a bigger job, you can't go back for more money.
Also if there are issues they most likely won't cover that area again in the short term etc. ie paid out for a roof replacement, you got someone else to put the roof on and it leaks in the next rain storm causing internal damage they might not cover it.
and the only way to know what 'reasonable' costs for repairs is for you or the insurance company to get a quote.
Has bupa assigned a builder who has quoted yet? As it sounds like they haven't yet, which is your real problem.
As you have told your friend to get quotes and bupa said they'll pay on said quotes, seems like a /thread. No insurance company is going to pay some random figure you think it will cost to fix without quotes.
Sometimes you have to jump through the hoops to get the result. As it sounds like there are no quotes on either side, then if you want to push along a payout, you'll have to source them yourself.