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Insurance Claim

PostPosted: Thu Jul 13, 2017 2:31 pm
by diy
Are there any established mechanisms for determining a claim value for items stolen? We had our garage broken in to a few days ago and while the police have suspects, aided by my CCTV, its not looking good for recovery. I don't have a new for old policy, so not sure how I put a value on the stuff (bikes) they stole? Some of them are a few years old and would probably have a re-sale value around 70% of what it would cost to replace them with similar second hand gear.

For example : one of the bikes cost me £2.5K, was worth about £600 and would cost at least £1000 to replace with similar?

How do I value my loss?

2.5k would be betterment
£600 wouldn't allow me to replace for similar

Re: Insurance Claim

PostPosted: Thu Jul 13, 2017 2:45 pm
by atticus
Your first port of call is to read your policy. That will tell you what basis of claim settlement you have signed up for. If you bought your insurance solely on price you may find that it is not generous on this question.

Re: Insurance Claim

PostPosted: Thu Jul 13, 2017 2:47 pm
by shootist
I would have thought that you merely declare the new value and let then start on the offers, particularly with a 'new for old' policy. The price you paid new is a known item, the price you might be able to replace it with is an opinion. I'm not sure about the betterment angle but a policy of 'new for old' would seem to offer just that. A lot of these insurance companies will seek to replace like with like and if they can't find an original they will usually offer a replacement of similar value.

Case in point, my garage was broken into and a small Honda 'suitcase' generator was stolen. I declared it as purchased secondhand at £250. Initially they said they couldn't find a replacement and were going to offer me £250. Then they found a replacement Honda generator of identical output which they supplied to me new as a replacement. The shop price of the replacement was £900! All above board. The idea is, I think, to try and stop people using insurance claims as cash cows.

Re: Insurance Claim

PostPosted: Thu Jul 13, 2017 7:27 pm
by diy
yes - The hassle of the claim, is why I rarely bother insuring things, that and all the security requirements needed to comply. By the time I've paid the excess and accounted for the premium increase, its probably not worth the bother.

Re: Insurance Claim

PostPosted: Thu Jul 13, 2017 8:56 pm
by atticus
Yes, It is often easier just to buy another Sunseeker!

Re: Insurance Claim

PostPosted: Fri Jul 14, 2017 8:13 am
by diy
Yes if I had one of those, I'd probably insure it, or sell it. Or buy my own oil refinery to fuel it. However, bicycle specific insurance is very expensive and full of caveats, it represents approximately 1/10th of the value insured per year. Those are risks I'm willing to take.