car crash

Our work - 26/11/2020

An unexpected guest

Providing immediate accommodation for a customer after a car crashed into the front of their property, later utilising the diminished market value option to settle the claim promptly

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The Challenge

  • We received instructions indicating that a gable end property had been affected by a severe motor impact. The damage was extensive to the front of the property and initial investigations revealed the property to be at serious risk of collapse. The police were involved due to the condition of the driver at the scene of the incident. The Customer needed accommodation immediately because the property was unsafe. 

Our Solution

  • The Adjusters advised that the Council had inspected the property and had decided that due to the proximity to the road the property needed to be demolished immediately as a severe weather forecast had been notified to the council and high winds now meant that lives could be at risk from the property.
  • Our team suggested that a Diminished Market Valuation option could be considered, the Insurer agreed and we set about organising three independent market valuations of the property. 
  • After two weeks the valuations were processed and submitted to the Insurer. The property in good condition would have sold in good market conditions for an Open Market Value of £100,000. As it stood the Diminished Market Value stood at £50,000. 

The Results

  • A cash settlement was agreed with the policyholder and the property was approved to sell at auction. The auction sale realised a figure of £75,000 which reduced the total cash settlement from the insurer to the sum of £25,000.
  • The policyholder meanwhile had purchased and moved into their new home, in the time it took to realise the sale via auction, before the completion of the sale on their old home. There was no need for longer term accommodation and the prompt settlement of the claim reduced the total expenditure on a case that clearly would have cost considerably more than the settlement process via auction.
 
 

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