Underinsurance on a property fire claim: A settlement increase of over £62,000

Location Somerset

Customer Mr Schroder

Mr Schroder experienced a fire at his home in Somerset and the thatched property suffered extensive damage. Mr Schroder faced underinsurance of 66%, which the Insurers proposed applying to the settlement of the claim based on generic figures given by the Loss Adjuster.

Mr Schroder was concerned about dealing directly with the insurance company and decided to appoint the help of a Loss Assessor to assist throughout the claims process. The following morning, he met with Loss Assessors from two different companies and chose Morgan Clark as the representative was “professional in his approach” and didn’t push him to make a quick decision.


The claim

Morgan Clark stepped in to handle the claim from that morning onwards. As well as saving Mr Schroder from the excessive costs of the recovery team sent by the insurance company, Morgan Clark liaised with the Loss Adjuster and agreed to appoint Chartered Surveyors. The surveyors put together a full schedule of works, including a detailed specification of repair and a thorough assessment of the cost to implement the repair works needed on the property. As the house was A-listed, Morgan Clark also dealt with the local Conservation Officer.

Following the initial conversations, Morgan Clark continued to negotiate with the Loss Adjuster and Insurer. During these negotiations, an agreement for underinsurance at 76% was reached for rebuilding the property, but Morgan Clark felt this figure was still too low. Under Morgan Clark’s instruction, the surveyor carried out a second survey. This detailed rebuild survey highlighted a more satisfying figure of underinsurance at 90%. After the insurance company refused to award more than 76% underinsurance, the claim was referred to the Ombudsmen for a final decision.


The results

Mr Schroder decided to accept the cash settlement at a rate of 76% underinsurance for repairs while awaiting a decision from the Ombudsman.

For 12 months, Morgan Clark continued to liaise with the Ombudsman and Ageas on behalf of Mr Schroder. A decision was eventually made in favour of Mr Schroder’s case and the underinsurance was awarded at 90% – a positive result which he “would not have been able to reach” without the help of Morgan Clark. The final claim was agreed at £22,840 for Contents and a further £320,246.05 for Repairs.

Mr Schroder says he “would not have known what to do” without Morgan Clark and “could not have achieved this result without them”.

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