OT: Home insurance question
09-11-2011, 09:40 PM
#1
Three Wheelin'
Thread Starter
OT: Home insurance question
I am in the midst of an insurance claim for household contents that got damaged. The insurance company offered me two options. A cash buyout or replacement value where they would give me in cash the depreciated value of the settlement up front and then provide me with a ceiling dollar amount. I can replace everything written off, submit the receipts and get reimbursed the difference between the up front cash for the depreciated value of the goods and the actual replacement value ceiling they have set.
I am leaning towards a cash buyout just because the other option sounds like a logistical nightmare. My problem is that there is quite a difference between what they are offering me as a cash buyout and what they would give me if I replaced all the items and submitted receipts.
My question: Does anyone know if the cash buyouts are negotiable, and if so, on what grounds can you get the buyout to reflect the real value of my loss?
I am leaning towards a cash buyout just because the other option sounds like a logistical nightmare. My problem is that there is quite a difference between what they are offering me as a cash buyout and what they would give me if I replaced all the items and submitted receipts.
My question: Does anyone know if the cash buyouts are negotiable, and if so, on what grounds can you get the buyout to reflect the real value of my loss?
09-11-2011, 10:29 PM
#2
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In short...Yes you can.
Hi Justin,
You are entitled to replacement cost/value but only if you replace the items otherwise you get Actual Cash Value.
The adjuster may have a computer program that automatically provides depreciated amounts or it may be a senior adjuster that is able to negotiate on their own...Luck of the draw sometimes. It varies soo much that everyone will have a different outcome depending on adjuster and Insurer.
If you are going to replace most to all the items I would suggest you submit receipts and just keep asking for extensions.
As much as it is a pain, just keep your receipts and check them off your Proof of Loss and hand them in.
If you are really dreading doing this, have an honest talk with the adjuster at first explaining that it is a big pain in the but for both yourself and him/her.
If you have a lot of items on your POL Tell them that you will be replacing items a few at a time and will be sending in receipts periodically asking for replacement costs as you go cause you don't want to leave money on the table but you also don't want to wait to replace everything at once.
The last thing they want is to be receiving receipts every couple of weeks and cutting cheques for the next 6 months.
With this in mind tell them it is best to give you replacement cost.....if they refuse ask for something close to it and tell him it is full and final and he can close out the contents with that amount and not here from you again.
Good Luck!
You are entitled to replacement cost/value but only if you replace the items otherwise you get Actual Cash Value.
The adjuster may have a computer program that automatically provides depreciated amounts or it may be a senior adjuster that is able to negotiate on their own...Luck of the draw sometimes. It varies soo much that everyone will have a different outcome depending on adjuster and Insurer.
If you are going to replace most to all the items I would suggest you submit receipts and just keep asking for extensions.
As much as it is a pain, just keep your receipts and check them off your Proof of Loss and hand them in.
If you are really dreading doing this, have an honest talk with the adjuster at first explaining that it is a big pain in the but for both yourself and him/her.
If you have a lot of items on your POL Tell them that you will be replacing items a few at a time and will be sending in receipts periodically asking for replacement costs as you go cause you don't want to leave money on the table but you also don't want to wait to replace everything at once.
The last thing they want is to be receiving receipts every couple of weeks and cutting cheques for the next 6 months.
With this in mind tell them it is best to give you replacement cost.....if they refuse ask for something close to it and tell him it is full and final and he can close out the contents with that amount and not here from you again.
Good Luck!
