Insurance cash claim warning

INSURANCE customers are being warned to carefully weigh up potential cash settlements.

- BY VICKY SHAW

When resolving a claim, insurers may offer to repair or replace losses, a cash settlement, or a combination of the two.

Following a poll of 2800 people, Which? said while accepting a cash payout can seem like a fast solution, claimants can risk being left out of pocket in the long run.

For example, if a house has been damaged, the full restoration costs may only become apparent when work is under way and people may end up using some of their own funds.