Insurance insists on cash payout for repair

Flood damage. Suncorp got an estimate from John’s Lyng (JLG) that omitted significant costs. JLG refuse to do the repair. The cheapest quote I can get is double the payout.
How can their payout be based on an estimate if the provider of the estimate is not prepared to do the repair at that price?
Has anyone else been caught with an insurer insisting on a cash payout?


Welcome to the Community @Petercvs

See your PDS on p90-91. Have you submitted your quote? The salient verbiage is:

When your claim for loss or damage to the home is covered and a member of our supplier
network is unable to complete the repair or rebuild, we will ask you to engage a builder to
provide a scope of works and provide a quote on the cost to repair or rebuild your home on a ‘new for old’ basis.

Once the scope of works and quote is provided to us, we will arrange for it to be assessed.This will involve reviewing the quote to determine it is appropriate and reasonable for the scope of works. This includes a consideration of the appropriateness of materials, repair method, labour and material costs and overall cost effectiveness

If the quote is appropriate and reasonable for the scope of works, we will then pay you the assessed amount.

If that is not the process you followed or that was presented to you. your next step is to lodge a formal complaint to Suncorp, and if still unsatisfactory to AFCA.

In general insurers will not pay more than it would cost them for the repair using their own lowest cost contractors, that being their benchmark.


Before the quote i requested was completed, I was paid out and told that the claim was closed and any concerns should be addressed to AFCA. The application to AFCA is in progress now.
Suncorp have the quote I obtained but refuse to change their position.
I can not do the repairs myself and my position from the start was that I wanted a repair, not a cash settlement.
I fail to see how a “quote” form a firm who can not do the repair can be a valid quote.
I want to know if others have been told they MUST take a cash settlement and complete the repair themselves.

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Most of us, myself included, often miss what can be fairly important clauses in our PDS. The most obvious T&C Suncorp might stand on, not knowing your policy details, could be (on p90, ref 3rd column)

If the sum insured was sufficient to cover damages and you can substantiate errors in JLG’s quote AFCA should respond favourably as Suncorp could have violated their own process and procedure, assuming there is not more to the background.

Whether they refuse to or are unable to will make a difference, as will the difference of Suncorp asking you to get a quote or you getting your own because of your assessment of the JLG quote.

Since it is with AFCA already I doubt we can add anything except our best wishes for a good outcome and hope you will report back how it goes.

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Thanks. Will keep you informed of the result.