Cash settlement
Accepting a cash settlement to repair your home or replace your contents
What is a cash settlement? A cash settlement is a lump sum payment we may offer to settle your claim instead of using our own builder to repair your home or replace your contents.
A cash settlement can cover part (or all) of the total amount claimed.
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Cash settlementWe will offer you a cash settlement when we cannot use our builder and supplier network to repair your home or replace your contents.
This can happen for various reasons, including (but not limited to):
Your assessor or claims manager will explain this to you thoroughly and answer any questions you may have.
After we have assessed the damage and considered quotes, we can calculate the cash settlement amount.
We rely on our suppliers to understand the repair methods, labour, materials, and costs needed to repair your home or replace your contents; and will provide you with this information when offering a cash settlement.
Your claims manager or assessor will be able to clearly explain how your cash settlement has been calculated and answer any questions you may have throughout the claims process.
Your cash settlement can cover part (or all) of the total amount claimed, depending on your individual claim circumstances.
For example, we may replace some of your contents via our preferred suppliers and cash settle the remaining contents if our suppliers are unable to source them. Or if the damage to your home is extensive, we may manage the repairs to your home and offer you a cash settlement for your contents so you can replace your contents while you are in long term temporary accommodation.
When deciding if you will accept a cash settlement, there are a few things to consider:
If you are using your own builder, we recommend enquiring about their insurances, warranties, and guarantees.
We have listed some of the most common questions our claims teams hear from our customers.
If you would like more information about these questions, or one we haven’t already mentioned, please reach out to your claims manager (someone will have been assigned to you if you have already submitted a claim) or contact us.
Yes. If you want to use your own tradespeople, we will consider your request to cash settle your claim.
This may also include payment for any urgent repair work that was initially done to minimise damage to your home. We will need you to send through photos, the invoice for any urgent repair work, and the detailed quote for the reinstatement work.
Our team will review the documentation and any supporting information, and if the invoices and quotes are fair and reasonable and match the repair details in our Scope of Work, we may be able to settle your claim without needing to visit the property.
Important things to consider when arranging for repairs to be completed on your home:
Your claims manager or assessor will be able to clearly explain how your cash settlement has been calculated and answer any questions you may have throughout the process.
We will need to assess the additional damage to determine if it will be covered.
If you identify more damage, please stop the repair work (if it is safe to do so) and contact your claims manager immediately. We will confirm the next steps for assessing the new damage and will make an additional payment if you are entitled to this as part of your original claim.
If it’s not possible for us to repair your home, and you don’t want to cash settle, we will work with you to come to an agreement. Your claims manager will be able to give you more information about how we do this.
If we only pay part of the home or contents sum insured to you, your policy will continue for the remainder of the period of insurance.
If we pay the full home or contents sum insured to you, your cover will end once the cash settlement for your sum insured has been paid to you or when we finalise your claim (whichever occurs last).
When it comes time to renew your policy, you may also be required to submit supporting documentation for any claims that have been cash settled. For example, you may need to provide copies of receipts for building work or the replacement of contents items.
When we pay you a cash settlement, the undamaged areas of your home will continue to be covered by your existing home policy.
It is important to note that your policy will automatically exclude any unrepaired damage until all repairs have been completed.
It’s important to know your options when it comes to considering a cash settlement for your home or contents policy. We want to make sure you have the information you need to make an informed decision.
If you have already been assigned a claims manager, they are your best point of contact for assistance with your cash settlement.
If you have not yet submitted a claim, you can do so online or call the claims number listed on the website of the insurance brand you purchased your policy through.
We offer assistance for customers who are experiencing financial hardship, vulnerability, domestic violence, and more. To find out how we can help, visit our Support for customers page.
Our complaints process is available on our complaints policy page.
