Hi helpful Ozbargain community!
Long story short. If theoretically my house was flooded and the insurance company was happy to pay out (i.e I haven't committed fraud!) am I eligible to make a choice of taking a monetary amount of the goods that were damaged, or must I go to a place like Harvey Norman, replace the goods and supply my insurer with an invoice?
I'm aware that this can be done with car insurance, if you have an old banger that isn't worth fixing and someone hits you you can simply go and get a quote from an repair shop and then the insurer will provide the money, if you choose to fix the car with that or do something else it's up to you.
Is this dependant on what insurer I have? The person on the phone was really unhelpful.
Thank you!
I used to work in the claims division of a large insurer. On most policies, the insurer will arrange for replacement items and will pay for it directly. This is the most cost effective method for them. It depends on what they replace. For large cost items such as TVs or carpet replacement, they will arrange for an equivalent item to be provided. In all likelihood, you will never see what it cost - that is between the insurer and the retailer. The likes of Harvey Norman have their own insurance replacement teams, whose job is to provide replacement items for insurers.
For smaller items, they will most likely provide you with a gift card with a particular retailer to the value of the goods. They will avoid direct monetary payouts or letting you buy it directly.