Our residence flooded, why is insurance coverage payout £4,942 decrease than our quote?

Earlier this year, we had a burst pipe in our utility room, which flooded the downstairs of our house.

We made a claim with our insurer, Policy Expert. We had several problems along the way but they eventually came back with a figure of £4,611 for the repairs.

However, the quotes we got from tradesmen suggested it would cost more than double that at £9,553.

They said the materials alone would cost £4,600, leaving just £11 for labour if we accepted the insurer’s payout.

I knew it would be a conservative estimate, but this seems ridiculously low.

How can the difference be that much, and can we challenge it? T.E, Essex

Helen Crane, This is Money’s consumer champion, replies: Flooding in your home is a nightmare to deal with.

After the event you were left with squelching carpets and wood flooring that needed to be removed, and you were anxious to air things out to prevent more damage.

But in the first few weeks after the flood, you felt Policy Expert left you high and (not so) dry.

It said it would provide dehumidifiers and floor fans to soak up some of the moisture, but these did not arrive.

When mould started growing up the walls two weeks later, you called again. Only at this point were you told you could hire your own dehumidifiers and claim back the money, which you did.

Policy Expert then sent a contractor to remove the flooring and pick up waste from outside your house, and you thought you were finally on the way to getting the home you loved back.

However, this person told you they could only remove the wooden flooring, leaving you stuck with the wet carpet and underlay, as well as the wooden flooring underlay, which you had to remove yourself.

Almost a month after the flood, the first response team from Policy Expert’s loss adjusters Trinity Claims finally visited to review the damage.

You then got a settlement figure, which was for £4,611. This included refunding you for the cost of the dehumidifier & floor fans, which cost £231.

You thought this sounded low, and getting your own quotes for the repairs proved you right as they came to a total of £9,553. 

This comprised £6,971 for replacing the flooring and door and window architraves, £2,352 for redecorating and £231 to repay you for the dehumidifier hire.

The difference between what you were quoted for the repairs and Policy Expert’s proposed payout was a huge £4,942.

When you raised this with Policy Expert, it told you it had a contractor that could do the work for that amount.

It is important to check the wording of your policy, and yours said: ‘For loss or damage to the buildings, we will pay up to the full cost of rebuilding, as long as the buildings are regularly maintained, in a good state of repair and they are insured for the full cost of rebuilding.’ 

You met all those criteria. 

Under the terms of your policy, you had the option to either use the insurer’s contractor, or receive the same amount of cash and hire your own.

However, the quotes you had suggested that the materials alone would cost £4,600, so you were concerned that the work done for £4,611 including labour would be to the same standard.

It didn’t sound right, so you asked Policy Expert for details about the scope of the work that would be done for that figure.

The scope of work is a list of all the repairs that need to be done, based on the information from the person that visited your home.

Shockingly, you discovered that an entire room had been omitted from the report. The loss adjuster also hadn’t included the cost of replacing the cabinets in your utility room.

Now nearly two months since the flood and still with a soggy house, you raised a complaint with Policy Expert – but you did not hear back and that is when you contacted me for help.

I contacted Policy Expert to explain your concerns, and ask why a room had been missed off. 

It sent another loss adjuster to your home two days later to re-do the report on your home.

That put clear blue water between the old figure and the new, with Policy Expert now agreeing to pay you £8,196.

While it doesn’t quite match the £9,553 you were quoted, it is much closer to the true cost of repairing your home.

A Policy Expert spokesman said: ‘Our priority is settling policyholder claims quickly and fairly. 

‘We have been liaising with [the customer] and we are pleased to say we have resolved the situation.’

I was pleased to be able to hurry the insurer along and help you get a result, but the key to this was your asking to see the scope of work and realising that it didn’t match what needed to be done.

While most won’t miss off a whole room, this is a really good idea when making an insurance claim as it ensures you are getting the payout you are entitled to.

Scottish Power kept my money after cancelled switch

Late last year, I was approached in the supermarket by Scottish Power salespeople offering to save me money on my energy bills.

When I got home, I realised my bills were cheaper with my existing provider so I contacted Scottish Power straight away to cancel the switch.

However, £165 was taken from my bank account by Scottish Power soon after.

I have asked for a refund several times, and been told a cheque is in the post or that someone will call me back, but they never do. 

I’m often told to log in to my account to cancel, but I can’t as I was never given any account details. S.R 

Helen Crane replies: I do question whether allowing energy firms to give the hard sell to customers during their weekly shop is a good idea. 

Given how expensive bills still are, it’s vital that people are able to compare their old and new rates and dig into the details of the tariff they are being offered when switching provider. Not an easy thing to do in the fruit and veg aisle. 

You did the research when you got home and realised it wasn’t a better deal so cancelled promptly, and should have been refunded for the money taken in the same fashion. 

I contacted Scottish Power, and the money is now on its way to you – along with a £100 goodwill payment. 

A spokeswoman said: ‘We’re sorry for the frustration caused to [S.R] and the time it’s taken to resolve this. 

‘We refunded part of his payment in January through the erroneous transfer process, however, as his account was closed and details removed, we were unable to refund part of his direct debit payment.

‘We have been in contact with [S.R] and have arranged to pay that amount back via bank transfer and will also be making a £100 goodwill payment in recognition of his experience.’