by matt50 » Tue Mar 24, 2009 05:26 pm
Our home was vacant and for sale when an unfortunate fire burned the house to the ground. This happened about 8 mnths ago and we have yet to find out any information from the insurance company as to our claim. They state that the incident is still under investigation. We are still paying the mortgage and insurance on a home that is not there. Now someone wants to buy the property.
I don't think that I can sell the property without our claim be satisfied or the investigation still ongoing, can I? If I sell the property can I still claim the insurance for the loss of home? How long does the insurance company have before they have to pay out the claim?
I don't think that I can sell the property without our claim be satisfied or the investigation still ongoing, can I? If I sell the property can I still claim the insurance for the loss of home? How long does the insurance company have before they have to pay out the claim?
Posted: Tue Mar 24, 2009 05:57 pm Post Subject:
My recommendation is to file a complaint with your states Dept of Insurance. They can look into the matter and see if the delay is justified. * months to investigate a suspicious claim is way too long. If they suspect something, they should have requested an Examination under Oath by now.
You have the responsiblity to preserve the home if the insurance company has a reason. Call your adjuster and ask if repairs can be made. If they tell you know, ask for a time frame. If they won't give you one, they are probably dragging their feet and the complaint needs to be filed.
Posted: Tue Mar 24, 2009 06:49 pm Post Subject:
I have already sent them a statement of oath or something like that which had to be notarized and answered many questions recorded by him months ago. I have been told, not by the insurance company, that the home was a total loss, not repairable.
Posted: Tue Mar 24, 2009 07:02 pm Post Subject:
I'd call the carrier and speak to a supervisor if needed. Ask them why they have not issued payment and to give you a time frame. If they can't do both of these, file a complaint with your state Dept of Ins.
Posted: Tue Mar 24, 2009 08:10 pm Post Subject:
Understood, I will contact the Dept of Ins for a complaint. I am confused as to how the replacement payment will be handled from the various responses to similar persons on this forum. We are unsure whether to rebuild the house or just sell the property, as we now reside in another state. We have replacement insurance for the home for nearly $250K. Will the replacement insurance pay off the remaining mortgage of $110K and the balance go to us? Will we get any of our equity back from this at all? Could you please explain what should happen. We simply want to purchase another home and get on with life, but we have no equity for a downpayment.
Posted: Wed Mar 25, 2009 03:56 am Post Subject:
If and apparently when your insurance company responds to the claim, they will issue actual cash value (ACV) for the damages. The replacement cost provisions to your policy do not kick in until the repairs are made. Now the ACV amount is typically around 65 to 80% of repairs. How your mortgage company looks handles this really depends on the mortgage company and how much you owe on the home.
If they do pay the claim and you do not agree with the ACV amount, ask them for a breakdown of where they are applying depreciation to arrive at the final figure. I only say this as some carriers will try and take more depreciation if they know that someone is not going to repair or rebuild. Depreciation should not be taken at a flat % across the entire estimate as different items depreciate faster then others. Then again, if they do respond and pay the claim and you are happy with the dollar amount, disregard above as to not cause waves and possibly more delays.
As for their investigation, I can see where the situation was questionable with a vacant home for sale and all…..but 8 months seems a little (A LOT) over the top.
Posted: Wed Apr 22, 2009 01:20 am Post Subject:
Did the local fire officials find it suspicious? Was it ruled as Arson or do they have a specific cause? One of the things that you can do to protect yourself is get copies of the fire reports (maintained by the Fire Marshal / Fire Dept, etc.). Read through them very carefully and see if there are any statements that could possibly indicate something "fishy." If they gathered enough evidence to staisfy themselves, you can use this to your advantage if the insurance company continues to drag its feet.
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