Does this sound dodgy? House flooded, approached by "broker" - 10% of claim
- Thread starter 5Times
- Start date
LDFerguson
Registered User
- Messages
- 4,663
Not in the general insurance business so this is new to me, but it sounds suspect.
Your parents insured their house.
They have a claim on their insurance.
Why would they need someone to mediate between them and the insurance company? Just deal direct and save yourself 10%.
Or if you used a broker to take out the insurance in the first place, the broker should be willing and able to help you through a claim.
Your parents insured their house.
They have a claim on their insurance.
Why would they need someone to mediate between them and the insurance company? Just deal direct and save yourself 10%.
Or if you used a broker to take out the insurance in the first place, the broker should be willing and able to help you through a claim.
Re: Does this sound dodgy
Thanks for the replies, as matter of interest what sort of percentage were you offered?.
I now think my parents are been taken advantage of, too many things are starting to make sence now as I know that with a home insurance claim you just hear from the assessor, get your letter of the amount of the claim, confirmation of payment due and then the cheque. I thought this was dodgy from the very start but alot of information is being witheld from me due to my original suspicions of this not being general insurance practice.
Again, many thanks to you all for your replies.
Thanks for the replies, as matter of interest what sort of percentage were you offered?.
I now think my parents are been taken advantage of, too many things are starting to make sence now as I know that with a home insurance claim you just hear from the assessor, get your letter of the amount of the claim, confirmation of payment due and then the cheque. I thought this was dodgy from the very start but alot of information is being witheld from me due to my original suspicions of this not being general insurance practice.
Again, many thanks to you all for your replies.
I am going to get his name and number off my father tomorrow and contact the Insurance and Financial regulator on Monday morning!. There is no way this person could be legit and to be honest I don't actually think he is a "broker", just some middle mad by the sounds of things.
DrMoriarty
Moderator
- Messages
- 5,173
Are you sure this isn't a (perfectly legitimate) loss assessor?
May be totally unnecessary, however, my own parents were flooded recently and came across one of these guys and were very pleased with him. He met with the Insurance assessor and did all the negotiations. The eventual settlement was much more than they originally expected
But would a loss assessor be charging 10% of the settlement?. Any of them that I have looked up do not have a fee according to their website anyway, they get their commission of the insurance company don't they?.
Bonaparte, were you parents charged a high fee for this?. It's the information we are getting is very dicey and the person that apparantly got them in touch with this guy is a complete dodgy individual that behaves like he climbed mount everest blind folded! You know yourself!
DrMoriarty
Moderator
- Messages
- 5,173
A loss adjuster is used by an insurance company to assess the value of a claim, particularly if there is a disagreement between the insurer and the insured. His/her job is to reduce the amount claimed as far as possible, thereby saving the insurance company money.
A loss assessor can be employed by a claimant to value a loss and present the insurance company with a supporting case for this valuation. He/she obviously tries to maximise the amount of the claim, since that determines his/her commission (10% + VAT is typical).
You basically let the two of them fight it out. A competent assessor should be able to negotiate a better settlement than the company would be likely to agree to on their own terms, thereby earning his/her fee. But if you don't want to hire one, you don't have to.
Hi there
Claims management companies are a legitimate business and it is very usual to charge a 10% fee for their service. In fact many insurers these days offer this as part of their insurance policy, i.e. you can pay an extra amount on your premium to avail of their services should a claim arise.
I know this because I am currently going through a claim for flood damage. In my case I am covered for the claims management fees up to a maximum of €15,000. After that the claims management company get 10% of the balance of the claim award.
The fee is for their service, i.e. they negotiate with the insurance company to get you the best deal possible. My experience so far has been that I'm glad I paid the extra few bob to avail of their services! Insurance claims are a bit of a minefield!
It seems like in this case your parents are being offered a service. If they choose this service then the 10% is the fee they will have to pay. Of course they can decide to negotiate with the insurance company themselves and that is their right.
Claims management companies are a legitimate business and it is very usual to charge a 10% fee for their service. In fact many insurers these days offer this as part of their insurance policy, i.e. you can pay an extra amount on your premium to avail of their services should a claim arise.
I know this because I am currently going through a claim for flood damage. In my case I am covered for the claims management fees up to a maximum of €15,000. After that the claims management company get 10% of the balance of the claim award.
The fee is for their service, i.e. they negotiate with the insurance company to get you the best deal possible. My experience so far has been that I'm glad I paid the extra few bob to avail of their services! Insurance claims are a bit of a minefield!
It seems like in this case your parents are being offered a service. If they choose this service then the 10% is the fee they will have to pay. Of course they can decide to negotiate with the insurance company themselves and that is their right.
purplealien
Registered User
- Messages
- 350
10 per cent is correct to the best of my knowledge as we were quoted the same this week for a job on our house
Complainer
Registered User
- Messages
- 4,949
So much for free market competition - Doesn't anyone negotiate on fees? Why not structure to contract to give him 10% of everything over a threshold?
It's most likely a loss assessor.
We used one after a leak. Our untrained eye probably would have only claimed for the flooring....but he put in for repapering, new skirting (due to damage trying to get to the leak) & a few other thing that I NEVER would have thought about & the insurance company would not have told me about.
He more than earned his 10%!! If it a straight forward cliam, with just one item affected, then you probably don't need one. But with larger jobs and possible knock on effects, they can offer a good service.
We used one after a leak. Our untrained eye probably would have only claimed for the flooring....but he put in for repapering, new skirting (due to damage trying to get to the leak) & a few other thing that I NEVER would have thought about & the insurance company would not have told me about.
He more than earned his 10%!! If it a straight forward cliam, with just one item affected, then you probably don't need one. But with larger jobs and possible knock on effects, they can offer a good service.
DrMoriarty
Moderator
- Messages
- 5,173
I think the whole point here is that the OP (or maybe the person who referred this guy — 'a complete dodgy individual that behaves like he climbed mount everest blind folded'?) may have got his merms tuddled.