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Insurance claim: question about a cash settlement

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  • Jul 19th, 2020 10:49 pm
[OP]
Deal Addict
Jul 23, 2008
1113 posts
369 upvotes

Insurance claim: question about a cash settlement

Hello,
We had a flood in our house and the some of the floors in certain rooms were wrecked. My insurance co is going to pay for the flooring for my whole house (one level rancher) to be replaced as we cannot match it. If I was to take a cash settlement, replace certain rooms but live with the not so bad areas do you know if this is possible or by taking a cash settlement do I still have to go ahead and get the work done everywhere? Thanks
Last edited by Mars2012 on Jul 20th, 2020 12:50 am, edited 1 time in total.
Reason: added detail to title for clarity
7 replies
Deal Expert
Feb 7, 2017
22345 posts
20968 upvotes
Eastern Ontario
sc00ter77 wrote: Hello,
We had a flood in our house and the some of the floors in certain rooms were wrecked. My insurance co is going to pay for the flooring for my whole house (one level rancher) to be replaced as we cannot match it. If I was to take a cash settlement, replace certain rooms but live with the not so bad areas do you know if this is possible or by taking a cash settlement do I still have to go ahead and get the work done everywhere? Thanks
It’s definitely UNETHICAL ... if not illegal
To put thru an Insurance claim that hinges on ... but it won’t match

Just go on thru and get the whole job done ... cuz the Insurance accepted your claim / argument

Often they’ll REQUIRE that you actually get the work done ... so they aren’t paying out ... cuz “you can actually live with it”
(Otherwise it’s FRAUD ... a false claim )

Hey, I say if the Insurance Co is good enough to pay to get it all fixed
Go with it

Lots of insurance Cos out there who wouldn’t be so generous
And just deny a good part of your claim
[OP]
Deal Addict
Jul 23, 2008
1113 posts
369 upvotes
Thanks for your reply.....maybe I used the wrong wording in my original post. The insurance company is paying for the damage to the floor because of the flood. There is no false claim, what I meant, is that the flooring company cannot match my existing floors so they will replace all areas of the house with a comparable product or $ value. I've never had an insurance claim so was unsure what my choices are when it comes to a cash settlement.
Deal Addict
User avatar
Dec 12, 2006
4345 posts
562 upvotes
Messed Up Area
DO not take cash settlement, as they will have you sign off on claim and acceptance.
If any other damage or issues arise when replaceing floor is found they will fix ( aka mold, etc. ).


BTW,


get 3 quotes and you do not have to go through insurance suggested company( they do mass jobs and low quality fixes to keep claims in line, but usually cut corners an come back multiple times to fix ) for job.

also fight them on comparible product for the floor they cannot replace, 1st they will use a lower quality, bring to table what you consider a close match.

you also have the right to go higher quality but pay difference out of pocket.

If flood they will find more then just floor damage chance some mold and other issues
Deal Addict
User avatar
Oct 4, 2006
2873 posts
221 upvotes
Burlington
Generally you won't get the full value of the repair if you request a cash out.

My wife and I did that when one of our pipes leaked and damaged the cabinetry and floor of the kitchen while also leaking through to the basement.

Only reason we went that route is because we wanted to renovate the space anyways and this was just the kicker to get it done.

Insurance co required pictures of completed work after the fact and as mentioned above, a sign off to avoid extra liability.

I'd get it fixed up properly and move on with life, don't want to risk dealing with mould and other issues town the road.
Deal Guru
May 29, 2006
10689 posts
3345 upvotes
there is nothing unethical about taking a cash settlement. i took a cash settlement on my truck when i got in a minor accident. its your house, you either replace it all with insurance, or take the payout and do it yourself.
Deal Expert
Aug 2, 2001
17911 posts
8805 upvotes
Insurance companies treat a cash payout differently - our insurance company gave us 100% of the value of our claim in cash whereas others in our area received a percentage (weather related damage so entire neighbourhood was damaged).

You are able to take the cash settlement and do no work if you want, as well as only do partial work. The catch is that the insurance company will not pay you out for the same damage twice, and it's likely that if you have a future claim involving the flooring you will need to demonstrate that you did indeed replace it to be covered.
Deal Guru
Jan 25, 2007
11745 posts
6929 upvotes
Paris
rocking23nf wrote: there is nothing unethical about taking a cash settlement. i took a cash settlement on my truck when i got in a minor accident. its your house, you either replace it all with insurance, or take the payout and do it yourself.
I think a cash settlement on a vehicle is different than on a home where hidden damage can be an issue on an asset meant to last 100 years vs a truck at a probable average of around 15.

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