Home Damaged plasma TV

[Lobby]

Hiya,
Our plasma tv was damaged last night (2 yr old hit it!), and is now cracked and from what I see on the web they are not economically feasible to repair.

The insurance co says that someone will call Monday to arrange to inspect the TV and they mentioned that they'll either repair or replace.
Now I gues the repair option is going to work out more expensive than a new one (same model is now around 500, we paid 999 3 yrs ago)
When they say replace, I presume they send you a cheque for the value.

My questions if anyone has had this experience before:

Does replace mean financially or can they dig out another TV and expect us to accept it?

Are items like this treated like a car, i.e. although we paid 999 for it, the replacement balue is now around 500 so the insurance will only pay out 500 minus the excess?

 

[PaddyBloggit]

Hiya,
.... the insurance will only pay out 500 minus the excess?

Correct.

 

[peteb]

Does replace mean financially or can they dig out another TV and expect us to accept it?

Technically speaking, yes if its indemnity policy. No if its new for old basis on replacement.

 

[Towger]

Is it worth claiming? If your excess is 250 and you may have a 'no claims' discount on your house insurance, plus it adds hassle to change insurance company.

 

[Complainer]

The complication here is that I'd guess that the cost of an equivalent model today is probably about half the original price paid. So does 'new for old' cover refer to the original purchase price or the current replacement price?

 

[Lobby]

I believe we have "new for old" but as above I don't quite know what that means.

The TV was retailing 1400 when I bought it, BUT I queued up early outside DID on Dec 27th to avail of their special sale offers, they had 5 of the TV on sale at 999 - so I paid 999 for it, and thats what the receipt says (though it also mentions the 1400 price too and the special sale discount).

But today, the equivalent TV is available for about €650.

So whats the "new for old" price?

As regards the hassle and the excess, anyone have any ideas how a premium would be affected by such a claim? (Current premium is just under 50 a month)

 

[peteb]

If you bought a 42 inch lcd then the price is whatever the equivalent tv is now. So if its €600 now thats what it is! Dont matter that you queued up to get it!

 

[Claimsman]

If you are adequately insured on your contents, it is likely that you will be in a position to avail of new for old cover. However, there are some household policies that will make a deduction for wear and tear on electronic items over a certain age. In the event that you can avail of new for old cover, Insurers will give you the cost of the current equivalent item that has been damaged, less the deduction of the policy excess. If you paid €999 two years ago, and the cost of that item has reduced to say, €650, then the current replacement ( new for old) cost of €650 will form the basis of the measurement of the loss. What you originally paid for it will have no bearing on how the loss will be measured.

If you do have a claim under your policy, you must disclose this in the event that you wish to change insurers. Some insurers will not accept new customers who have a recent claims history. Therefore, even if you dont incur an additional premium following this claim, you may limit economic opportunities that arise in the event that you wish to change insurers and avail of more competitive premiums.

 

[Lobby]

Thanks Claimsman.