Our basement was flooded and the insurance is offering us 26

by lorraine.paquette » Wed Jan 19, 2011 06:26 pm

Our basement was flooded and the insurance is offering us 2600.00 for material as they had to cut 2 feet off of the gyps. the claim for furniture is 22,000.00 but we were planning on taking the cash but they are offering us 50% is this fair or should we negotiate a higher rate

Total Comments: 1

Posted: Thu Jan 20, 2011 04:52 am Post Subject:

need much more info to help. Am I correct in assuming the water damage was caused by a water leak that flooded the basement and is being covered under your homeowners policy?

by offering you 50% means either you have an ACV policy (they are depreciating your furniture...replacement value - depreciation = actual cash value) or you have a replacement policy and they have subtracted "recoverable depreciation". ie, meaning you get the difference only if you replace the furniture. Your policy will state whether your contents are covered ACV, Full Replacement, or replacement by recoverable depreciation.

as far as negotiating the value of the furniture, you can, but you need to be able to provide documentation to validate getting more. regarding negotiating the depreciation %, probably not...there are standard table guides for depreciating most everything; household depreciation guides are usually the same ones used by the state or IRS. but as with eveything, document your case.

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