Home – New Forums New here? Share your story Insurance Total Loss Payout

  • This topic is empty.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #982759
    Papa Lazarou
    Member
    • Total posts: 1
    Up
    0
    ::

    Hello All,

    We have arrived at a situation whereby our insurance company is treating our claim as a total loss and the full sum insured on the building is to be paid out.

    They have asked for a letter from our registered mortgagees to provide them with a Concurrence and Direction of payment indicating where the proceeds of the claim are to be paid.

    On receipt they will immediately arrange a settlement release so payment can be processed. We are let to see how and in what way the total loss value has been calculated.

    What occurs in this instance?
    I estimate that half the insurance payout would cover the mortgage.
    Do we retain the other half of the payout?
    Is the entire payout taxed as our income, or just our potential half payout?
    Do we retain the commercial property (which is still functional)?

    Any assistance would be greatly appreciated. This has been ongoing for 5 months.

    Kind Regards Papa.

    #1138640
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Papa,

    Welcome to Flying Solo.

    It sounds like you’ve been through a stressful time – I hope that some of the insurance folk around here will be able to give you some insights into the process, and hope that it is all resolved for you soon.

    Jayne

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.