Insurance Claim

[donetello]

During the recent flood my power spiked and damaged my PC.Ive claimed on the insurance who have accepted the claim after a report by a PC shop was sent to them detailing the damage.They have instructed a firm called Powerplay Direct to handle the claim.The PC in question was a custom built base unit costing �1.250.00 ,the specification Powerplay have sent equates to a standard PC which is worth around �600.00.I have pointed out the new one they plan to send is half the value but they insist its being replaced on like for like not value. Does this seem right I thought any replacement under insurance should be of equal value of the object being replaced.Ive also checked the parts being used and found out most are already surpassed by better CPUs etc.I look forward to your opinions thank you.

[Ethel]

My insurance policy insists that any custom or specialised items valued at over �1000 per item be listed separately, for which I pay extra cover. Is your insurance similar?

How much would it cost you to rebuild that original pc to the original spec today? Unless you built it in the last couple of months, my guess is it would be considerably cheaper than �1250 it cost you.

[donetello]

Nothing is mentioned in the policy about seperate listings for more valuable items,ill have to inquire for that,but as I said they have accepted to replace it.The PC was about 2 years old and yes if you could still get the parts it would cost less,but this is also true for many items.So what you are saying is I should just accept thier proposal.Im thinking on the lines as I did when I bought it originally it was the best PC you could get the one being offered is not custom built,If I was replacing it myself I would not by a PC that is already out of date.I would buy as I did before the one most likely to remain future proof for as long as possible.I have a �2,400.00 Plasma TV and would not expect them to replace it with a non branded one worth a �1,000.00 if that broke.

[Ethel]

Custom built is difficult for the insurance companies - did you keep all the receipts so you can show how much it cost?

The branded tv you mention is a lot easier - they would replace it with the same brand, same size and so on.

Your pc was the best you could get two years ago - it certainly would not be top spec today.

If you don't think the pc you are being offered is good enough, refuse the offer and tell them what you do want and why.

Write down the specs of your pc and tell them you want a close a replacement as possible.

[Buenchico]

There are basically two types of home contents insurance policy. One type (with higher premiums) pays out on a 'new for old' basis. i.e. the insurance company accepts that you'll have to buy new items and pays out the current retail price.

However, 'standard' contents policies (with lower premiums) only pay out the 'value' of the items lost. So, if your �2400 TV is a year or two old, it's 'value' (i.e. what you could get for it if you advertised it for sale) might only be around �1000, so that's the amount the insurance company would pay out in the event of a claim.

You should check the terms of your policy to see whether it pays out on 'value' or on a 'new for old' basis. If it's on value, �600 seems to be perfectly adequate. (The value of most PCs falls by at least 50% over 2 years). Even if it's on the basis of 'new for old', the insurance company only has to pay to provide you with a PC of a similar quality to the one which you had originally. They would be failing in their duty to the shareholders of their company (and therefore acting illegally) if they paid to provide you with a computer of a better quality than the one you had originally. (i.e. it seems perfectly reasonable to provide you with a PC with a CPU which has a 2005 specification, since that's what you had originally).

Chris

[joko]

if they provided you with a brand new machine worth the current price... there would be a lot more 'accidental' fires, floods, thefts...

600 may not sound much but its the spec thats important and if its the same as your old one - what more do you expect?
they replace the machine not the price