Discussions

So our extended family is going through a tough time with there insurance company. They are living away from there home due to a flood. The insurance company is rebuilding their home but they are having a hell of a time getting straight answers about their contents. They have replacement cost insurance but not one person at the company where she bought the insurance from is very open with information. The legal s:cript in her policy is terrible so I implore someone from a insurance company to explain replacement cost on contents. Do you get what you paid for the item, do you get the amount it would cost you to buy it now minus depreciation? If the item has no model #''s such as a couch for instance and they won''t tell you if pictures were taken how do you fight the amount they give you. All of her contents have been removed from the home so she doesn''t have access to them. Please refrain from negative comments they just need straight answers.  
 
Edited by Enough, 2016-07-07 14:30:50

We also have also had things stolen and replaced if they were more expensive. The issue is this is a cash settlement. They can either buy everything they own again and get paid for what they paid, or they get a settlement for less. That is what they are trying to figure out and with no luck. They don't want to buy EVERYTHING again, if they don't buy it they don't get paid for it.......or they take the cash with depreciation. This is the issue and they can't make heads or tails of it.

Typically you get the replacement or repair cost for personal property which qualifies for coverage. Some things don''t qualify for coverage automatically - it has to be in working order and it has to be replaceable (antiques, for instance, don''t have a common replacement value, so you''d need to add special coverage for those).  
 
The difficult part of the process is proving what you have. Receipts and pictures are good. If you don''t have any proof, you may find that they reject certain claims, or offer you less. (For instance, if you claim you had a $5000 TV in the basement, but don''t have a receipt, you might get a more standard value assessed for the replacement).  
 
Have you tried talking to your insurance broker? They may be helpful in explaining things.  
 
Edited by pudds, 2016-07-07 16:05:46

Based on my experience the adjuster should have given them a form to fill out listing all their contents with ages and where the items were purchased and a replacement cost amount for what it would cost to replace that item with one of similar quality. Then the adjuster would depreciate each item based on age and they would get a settlement. And if they replace an item they can submit receipt to receive the full amount, including taxes, less what they were already given for said item. If they don't replace certain items then the depreciated amount is the final settlement for those items. Hope that makes sense.

Years ago, when the "replacement" policy was sold to us, we were told is was as simple as the term. You are covered for replacement. And, insurance companies had compassion - & were actually there for those who suffered a misfortune. Now, they are all about "containing their losses/payouts." There is little to no concern for their policy holders. They also often hire "3rd party" claims adjusters.  
They claim to take age, etc into consideration, however - we, as long with various others can argue with that. They will push outrageously high depreciation rates and tell you "they are industry standards." Or, simply try to force you into signing & taking what you can get. Often, they will "starve" you to the point that you will simply take anything you are offered. Actually depreciation rates can be A LOT less than they offer (i.e. ten percent vs theirs being fifty, sixty or higher).  
The insurance companies will know that you are hurting & use that as an advantage.  
A warning for their home being repaired - the quotes provided by many of the contractors/renovation company/companies may or highly likely be far higher than "projected" & then they will "dip" into your contents. Likely, they will then run the contents to the max & the "insured" will be lucky to see much of it regardless.  
There are many contractors/reno companies (you know who these are) that are 'affiliated' & 'scratch each others backs' - with the insurance company & adjusters.  
It is very unethical -- good luck to them.

There is normally a time limit for you to "replace" you items (if the restoration company does not take your contents amount). This is often only six months.  
Yep- I know. The misfortune is difficult enough mentally & financially. Now you have to replace everything to get reimbursed. Try to negotiate a longer time frame on this.  
And - there is also limited time whereby you can hire a lawyer.  
DO NOT accept any payments - often, they will have a clause where you are accepting their terms.  
 
BE VERY CAREFUL.

The time limit to replace the contents varies by insurance company. Some are 6 months, yes, some are a year and some give you the full two years. So it just depends on who you insure with.

It would be very interesting to see what their outcome overall is. Replacement on contents, as well as the "restoration."  
Please keep us updated.  
It would also be interesting to see how many have had "difficulties" (to say the least) with their insurance companies, adjuster, restoration companies, etc...

integritynhonesty with you there bud we think alike it would seem.Without Ethics the World is a real sad place.  
Slightly off topic but applicable. Many years ago back in the UK I watched a tv programme about insurance companies and the way they handle claims etc . Wow what an eye opener, the fact that the adjusters were paid very high bonuses for saving the company money, at the expense of the, most times stressed, insured. Insurance companies make huge profits on money invested from their policies payments and then when someone claims they want to find some clause or loophole to hold money back. I am guessing the same bonus principle applies here.  
GET EVERYTHING IN WRITING EVERYTIME

From our experience & others, it appears you are right. The company (in our case) had a "independent adjuster" come out the day of the fire. He appears to work extremely closely with the "renovation/restoration" companies, contractors, insurance - etc.. nothing adds up,,, except for they are all tied together. And, they all see A LOT of the $$$$. We, along with numerous others get the shaft.

Integritynhonesty said "From our experience & others, it appears you are right. The company (in our case) had a "independent adjuster" come out the day of the fire. He appears to work extremely closely with the "renovation/restoration" companies, contractors, insurance - etc.. nothing adds up,,, except for they are all tied together. And, they all see A LOT of the $$$$. We, along with numerous others get the shaft. "

for them to all work extremely close. Do you really think that your claim is the only one they ever worked together on? Of course they have working relationships it's ridiculous that you think they shouldn't.  
 
If you purchased a policy with inadequate limits, it's not the adjusters fault, it's not the restoration company's fault, it's not the insurance company's fault, it's your fault for not asking the questions and educating yourself when you purchased the policy. Trying to save a few $$ on premium doesn't always save you in the long run.

obviously, you either work for an insurance co, "restoration company: or....& have never had a misfortune as such.  
By "working closely" - we are meaning they all get "extra business" / possibly "kickbacks" & have little to no consideration to those during EXTREMELY stressful times.  
It is understandable for them to make SOME income, but to do as many are doing is completely UNETHICAL.  
Obviously, you have no comprehension - or are as noted above perhaps you are one of those who profit hugely off of the insured???  
 
Edited by Integritynhonesty, 2016-07-09 11:29:40

& NOWHERE did it mention that the policy was inadequate for its limits. So, you are making a lot of false assumptions. In fact, it was more than adequate.  
Between insurance, adjusters, restoration companies, "depreciation" (40 - 75 percent vs actual 10 percent standards), and as noted by others - possible "bonuses" for "saving" the insurance company money, that quickly reduces what the "policy" actually ends up paying out.  
Get a grip  
 
Edited by Integritynhonesty, 2016-07-09 11:26:29

Integritynhonesty said "From our experience & others, it appears you are right. The company (in our case) had a "independent adjuster" come out the day of the fire. He appears to work extremely closely with the "renovation/restoration" companies, contractors, insurance - etc.. nothing adds up,,, except for they are all tied together. And, they all see A LOT of the $$$$. We, along with numerous others get the shaft. "

I do not work for, nor do I know anyone who works for, any independent adjusters, restoration companies, or insurance companies - well aside from those I met after my house fire. At every step along the way we were treated very respectfully and with empathy and understanding of the stressful situation we were in. The process did take some time, but everyone involved went above and beyond to do the best they could for my family.

Integritynhonesty said "& NOWHERE did it mention that the policy was inadequate for its limits. So, you are making a lot of false assumptions. In fact, it was more than adequate.   Between insurance, adjusters, restoration companies, "depreciation" (40 - 75 percent vs actual 10 percent standards), and as noted by others - possible "bonuses" for "saving" the insurance company money, that quickly reduces what the "policy" actually ends up paying out.   Get a grip     Edited by Integritynhonesty, 2016-07-09 11:26:29"

I do not work for, nor do I know anyone who works for, any independent adjusters, restoration companies, or insurance companies - well aside from those I met after my house fire. At every step along the way we were treated very respectfully and with empathy and understanding of the stressful situation we were in. The process did take some time, but everyone involved went above and beyond to do the best they could for my family.