News0 min ago
Hypothetical Insurance Question
13 Answers
Insurance is intended to put a person back to the position they were at before the incident - neither lose nor profit.
I often see fundraisers (using GoFundMe or similar) after house fires, burglaries etc and it has got me thinking. If the insurance state it should cost £30k to rectify the situation but the insured has already received £50k from fundraisers is the insurance company still bound to pay out?
I often see fundraisers (using GoFundMe or similar) after house fires, burglaries etc and it has got me thinking. If the insurance state it should cost £30k to rectify the situation but the insured has already received £50k from fundraisers is the insurance company still bound to pay out?
Answers
Best Answer
No best answer has yet been selected by barry1010. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.If my car were stolen I would claim on the insurance and I would receive a pay out. Should the police recover it afterwards, the car belongs to the insurance company. If they recover it before the pay out, the insurance will pay me nothing because I have not suffered a loss (even though my car was stolen).
Do you see the point I am trying to make?
Do you see the point I am trying to make?
If you were to accidentally have two insurance policies for one car (it can happen) and made a claim it would be a very long, drawn out process as each insurance company would say the other should pay out (it would be fraud if you claimed off both). Even though you have paid for two insurance policies you can only claim off one because insurance is to 'put you back to the position you were in before'.