When a fire destroyed a hay barn at a rural property, the policyholder faced a complex insurance claim and uncertainty around the final settlement.

With the support of their insurance broker, the client engaged the expertise of CEC to review the claim and ensure the policyholder’s interests were fully represented throughout the process.

The Insurance Claim Challenge

Following the fire at the barn, insurers raised concerns regarding property values and suggested that underinsurance may apply to the claim. Although policy liability was accepted, a dispute arose over average applied to farm buildings that the loss adjuster claimed were underinsured. This could create a significant risk that the final settlement might be reduced, leaving the policyholder facing a shortfall in recovering the true cost of the loss.

The farmer explained that he had insured some of the buildings solely as materials because he would repair or rebuild them in the event of damage. In this case it was clear that four of the farm buildings had been destroyed by the fire and it was the cost of rebuilding the other farm buildings that created the underinsurance alleged by the adjusters.

Underinsurance disputes can often arise when the declared value of a building or asset does not accurately reflect the cost to rebuild or reinstate it. Without expert representation, policyholders can find it difficult to challenge these technical assessments.

How CEC Approached the Claim

CEC appointed an independent loss adjuster to review the circumstances of the claim and assess the insurer’s position regarding underinsurance.

Working alongside the broker and policyholder, the CEC loss adjuster:

• Analysed the insurer’s valuation methodology.
• Reviewed the sums insured and policy wording.
• Assessed the actual scale and impact of the loss.
• Represented the client during negotiations with the insurer’s loss adjuster.

By providing an independent and technical review of the claim, CEC ensured that the policyholder’s position was clearly presented and fairly considered.

A Successful Outcome for the Broker and Client

Through detailed analysis and negotiation, the original offer of a settlement for Buildings of £53,063 was eventually increased to £75,187. Therefore, CEC’s involvement resulted in an additional £22,124 benefit to the policyholder compared with the initial position. We are also please to say that this was achieved without any additional fee charged by CEC, demonstrating the value that expert claims support can deliver when complex coverage issues arise. Both the insurance broker and the client where happy with the outcome, maintaining a trusted and valued client relationship.

Supporting Brokers and Their Clients

Insurance claims can be particularly challenging for insurance brokers and their clients, when technical issues such as underinsurance or property valuation disputes emerge. Having access to independent claims expertise can save time, streamline processes and make a significant difference to the outcome.

CEC works alongside insurance brokers to provide specialist claims support, helping clients prepare, present and negotiate their claims to achieve the fairest possible settlement. If you would like further information regarding our support please contact info@claimsec.co.uk or call 0141 7814695.