by Guest » Sat Feb 11, 2012 03:47 pm
We went to the Bahamas for Christmas and the New Years. Before going we had turned off the central heating to save on the power bill. We came back a month later and found that the kitchen was entirely flooded with water from the bathroom above. The water inside the pipes had frozen up and had cracked the pipes. The kitchen, ceiling, carpets and the kitchen fixtures are extensively damaged. We called our insurance company and they sent over an adjuster who said the damage, including the plumber’s bill was $3,100 but they were only going to pay us $2,600. They have not given any explicit reason for this even after I asked them repeatedly. What can be the problem? I’m 71 and living in Alabama.
Posted: Sun Feb 12, 2012 09:41 pm Post Subject:
Could it be that you have a $500 deductible on your coverage? Or could it be that you do not understand how your insurance works? Or both?
Your insurance company will pay for the loss on an Actual Cash Value (ACV) basis. ACV = replacement cost minus depreciation. Your deductible comes off that reduced amount. So if you have a $500 deductible, and the adjuster determines the ACV value of your loss at $3100, you get a check for $2600.
I don't think it has anything to do with your age or that you live in Alabama.
They have not given any explicit reason for this even after I asked them repeatedly.
Now, if this is true, you are a victim of Unfair Claims Practices on the part of your insurance company. File a complaint with the state Dept of Insurance.
Posted: Sun Mar 18, 2012 02:51 am Post Subject:
I would recommend that you speak with a Public Insurance Adjuster but unfortunately I do not believe that they license public adjusters in Alabama. I believe that the reply that was sent is most likely accurate as to why you received what you did. However, from my past experiences and hearing what happened in your home it does sound to be a pretty low payment. One thing I would recommend is to see if you have 'Appraisal' in your policy. If you do I would recommend finding a competent insurance damage appraiser in your area and see what they think.
Good luck and I hope you get everything you deserve!
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