Replacement Value Holdback

by Guest » Mon Jun 06, 2011 05:52 pm
Guest

What if, for example, the replacement value of a roof is determined to be $100,000 and the deduction is $5,000 and the holdback is $20,000 and the insurance company pays $75,000 but holds back the $20,000 until repairs are made. If the homeowner, bids out the work and does much of the tear off and removal himself and can get a contractor to replace the roof the original value for $75,000, can the homeowner still get the holdback? What about any derivation of this is if the actual dollar outlay by the homeowner is less than the total RV paid?

Total Comments: 3

Posted: Wed Jun 08, 2011 11:36 pm Post Subject:

The holdback is payable if repairs exceed the $75,000 previously paid.

Posted: Thu Jun 09, 2011 10:19 am Post Subject:

Well, I have a question here for you Max. If the repairs exceed this $75,000 mark, will the entire holdback worth $20,000 be paid to the claimant? Or is it gonnabe paid on a pro-rata basis?

Posted: Thu Jun 09, 2011 04:23 pm Post Subject:

$ for $. If the repairs are $80,000, then the $5,000 balance is paid. Insurance is intended to cover the cost, not provide a profit.

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