Property Damage Victims:

Your time may be running out!!
Most property damaged claims are initially paid on an Actual Cash Value Basis. What this means is that your claim settlement may total $10,000.00 but your insurance company pays you $8,000.00 and tells you that when you make repairs your can then contact them and ask for the $2,000.00 in withheld depreciation. This is all true.   But!!

Please read your insurance policy! Under the policy section: Loss Settlement. the following policy provision may apply:

"You ( the insured property owner ) may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to buildings on an actual cash value (ACV) basis. You may ten make a claim for any additional liability according to the provisions of this Condition 3. Loss Settlement." * page 10 of 19 Insurance Services Office, Inc., 1990 HO 00 03 94

In simple terms: If you have settled your claim on an actual cash value basis and your insurance company has withheld depreciation you must advise your insurance company that you intend to repair the building and replace your personal property. Your insurance company must be advised within 180days from the DATE of THE LOSS not the date of the settlement.

Your individual policy may have different wording or different conditions therefore it is very important to read and understand the Loss Settlement provisions of your homeowners policy.

There is a trend developing where some insurance companies are trying to require that the actual repairs and purchases have to be completed within the 180 day period.  If you insurance company is taking this position request that your insurance company provide you with a letter to this effect and file a complaint with your state insurance department. In the letter ask your State Insurance Department if this action is proper within your particular state.

Written by: Douglas L. LaFaive. ( Douglas L. LaFaive is a Special Feature writer for: Advocates for the Insured  www.claimshelp.com ä and author of The Claims Game How to Play to Win! How to ... settle your Automobile Injury Claim.)

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The information provided is meant to inform the consumer. It is not meant to provide Professional Legal Advice. Please read our disclaimer.

Should your property sustain damages from Fire, Lighting, Wind, Water or any other cause we strongly suggest that you consider and contact Douglas L. LaFaive & Associates Licensed Public Adjusters.

Should you suffer a personal injury of any kind we suggest that you consider and contact a Professional Attorney to review your options in pursuing a recovery from the responsible party.