Insurance companies repeatedly tell us how they are not making money or that could be explained as not making enough money therefore have made it unattractive for policyholders to make small insurance claims.
As they now make a very small profit from the investment side of their business, they must make all their profits from their underwriting books which means they want to charge more on premiums and pay less on insurance claims.
Let’s take a look at some examples hereunder,
If you have a water leak overhead a bathroom or bedroom and all that is affected is the ceiling, assuming there is no other damage within the room the insurance claim will amount anywhere from between €1,000 to €2,000.
Let’s look at the lower end of the scale first and assume the insurance claim is €1,000. Assuming you have a standard policy excess of €600 for water and you will lose your no claims bonus due to the fact you need to make a claim it actually doesn’t make financial sense for you to claim.
Let’s change things a little, now let’s assume the insurance claim is €2,000 with a €1,000 policy excess and you still lose your no claims bonus, the benefit is marginal to you due to the fact you have a high policy excess.
If you realised that the claim was larger and incurred some other items like flooring, skirting, wall slabs, etc, the claim would increase and it would make financial sense for you to claim.
In today’s market and with high policy excesses it now only makes sense for people to claim for losses upwards of €2,000 alternatively you need to look at getting a lower policy excess to prevent this reality.
Please call us today for a no obligation conversation on how to get a better settlement agreement from your insurance company or call 01-5135162.