can i use my claim money to repair and replace something not on original claim?

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Asked June 24, 2016

1 Answer


When it comes to understanding what you can or cannot do with claim money, you have to be aware of what insurance is in the first place. The point of insurance is only to put you in a position that is equal to where you were before the claim had occurred. They will never make you worse off than your situation, but they also won't make you better off than you were before either. So, in short, if you follow this simply idea of being brought back to your status prior to the claim, that will act as a good guide for what a claim payment can and cannot do.

Next, you should speak to your adjuster. There are terms based upon the specific policy and in specific circumstances that will be able to help you. This is not always the case, but because sometimes there are things that make plain sense even if they fall outside of the legal insurance contract, you may be able to have things changed.

However, at the end of the day the point of insurance is only to protect you and repair your damages back to the status that they were before the claim. In short, no, you cannot have repairs made for something that was not on the claim.

That being said, if you choose to have a cash payment made to you instead of getting repairs done, then you are able to do as you see fit. For example, if you were going to take the cash value of a vehicle and turn it in to be salvaged, you don't have to use that cash to buy a new car. It is your cash to do as you see fit. In the same mold, you can absolutely use the money to do as you see fit, so long as it is settlement money from the claim itself.

Answered June 27, 2016 by karen

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