Should I cash settle ?

Cash settlements are becoming more popular than ever. It’s a quick and convenient way of settling claims and instead of the policy holder having the work carried out by restoration professionals, they receive a cash lump sum from their insurance company to handle all the work themselves.

Is cash settling a good thing ? Well yes and no. Below we will examine the pros and cons of taking a cash settlement however we do not recommend cash settlements on fires.


– if the damage is minimal where most of the damage has rectified itself (the wall or ceiling has dried out naturally), yes we would recommend taking the cash.

– it is a very quick way to settle claims

– if the work doesn’t need carrying out you pocket all of the money and can use it for other purposes (let me make this clear you’re not supposed to but it’s your money and your choice)


– in fires we do not recommend cash settling even on laundry.

– on major leaks where two or more rooms are affected we do not recommend cash settling as the damage may be more extensive than the settlement

– in leaks where you have a solid structures involved – solid walls or concrete floors we do not recommend cash settlement. Why? Because these structures hold onto moisture and will not dry naturally quickly.

– where any type of cavity is involved in the leak. Cavities are warm dark places ideal for mould to grow in the presence of moisture. Mould and particularly black mould can be hazardous to health. There is another article about mould and it’s potential hazard to health.

– if you live in an older house (pre 1960’s) we do not recommend cash settling as these houses are notoriously difficult to restore after water leaks.

So there you have it. We have listed some of the major pros and cons of cash settling claims. There are some situations where it is advantageous and others where not so. Ideally you would have your home restored by professionals in any such events but we know that sometimes it’s possible to cash out without major long term issues.

However, cash settling in the wrong claim can major health problems and cost thousands of pounds to rectify.

If you have cash settled and need some help deciding the next step please call us on 01274 588011.

If you are thinking about cash settling a claim and are unsure what to do, you can speak to one of our dedicated team who will be able to assist you further.

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