I recently had a claim on my home insurance. A sum for the damage was agreed with the insurance company and i received the cheque minus a retention sum. A letter with the cheque explained that when the work was completed i should send in a vat invoice for the work completed along with some photos.
My questions are do i have to get the work done that i was paid for and do the insurance company come out to the house to check that the work was completed if i can get a vat invoice
Under the terms of your policy, you are entitled to be indemnified. That is, you are put in the same position following the loss that you enjoyed immediately before the loss . In addition to that, your policy, depending of course on the wording of your policy will provide you with new for old cover...in other words, give you "new for old"..ie, new decorations where the damaged decorations were 10 years old.
However, one of the conditions of this cover is that reinstatement is effected. Insurers will only pay you "new for old" in the event that you have the work carried out and you incur that cost. It is for this reason that a retention is held pending you having the work carried out and incurring the cost up to the amount you have been allowed in settlement. Insurers will require VAT invoices and proof of reinstatement.
In theory, the retention amount should represent the difference between the cost of "new for old" and the indemnity cost ( reinstatement less prior wear and tear). However, this concept to a large extent is abused because it is not readily understood by many insurers.
In essence, at this stage the OP has received an indemity settlement and will avail of the "new for old" settlement, when it is proven that that all costs have been incurred. Otherwise, the OP is only entitled to an indemnity settlement. Provide invoices showing that full costs have been incurred, or insurers will not release the retention. If the retention has been properly calculated, then insurers will be within their rights not to release the retention unless full costs are incurred and proof of this provided.