Insurance excess payable in advance

[Kat213]

I have a potential claim on my buildings insurance following a flood. An inspector is coming out next week to look at the damage. I have been told that I need to pay my insurance excess in advance, ie by debit card on the telephone or to the inspector when he attends. I find this quite strange and wonder whether it is usual practice? Thanks in anticipation of any help.

[EverClean]

Sounds a bit suspect to me. The assessor may conclude that you have no claim - thus you would not be liable to any excess.

[Kat213]

Hmm thats what I thought and they just said that if that was the case the excess would be returned to me!! It all seems quite odd and I've not heard of anyone having to do this before!

[NORMANTHEDOG]

who actually told you that.

[ambassabuild]

If your claim goes forward, you normally pay your excess to the first trade that engages work, normally on behalf of the insurance company, ie in your case , if dryers have been brought in, the drying company. If a building company carries out compleat works they will normally collect excess on comencment of work.. We allways tell the cliant we will collect on completion, when satisfied with work. You may wish to suggest this to the ccontractor, if they are good at what thay do it should not be a problem.
Good luck

[Kat213]

The person who told me that was the agent who rang to arrange for an inspector to come out. I first rang the claims department and wasn't told then, but when the agent rang to arrange an appointment he said they had been instructed to collect the excess!

[NORMANTHEDOG]

then check with your insurance company before paying it,dont take a third partys word for it.

[ambassabuild]

You say "inspector" I would take that as loss adjuster, they would normally let you know who will be collecting excess off you, even if the insurance company use all their own people and pay them direct, one of the contractors will be paid short of the excess amount, it is that contractor that collects excess from you. In my previous answer and this one I use the word "normally" this is in my experiance of working with different insurance companies and loss adjusters they have slight difference in workings. Tip- if a big claim think about securing your own loss accessor to act for you, it's only a phone call to get a cost to see if its worth it to you.

[woozer]

If the insurer or their agent are asking you to pay them the excess it could simply mean that they will then pay the tradesmen in full - a quick phone call to the insurer should put your mind at rest