OT, need Insurance advice

[colterphoto1]

with regards to a homeowner's claim and possible errors and omissions. Confidentiality appreciated.

please email colterphoto1 at aol.com, thanks!

Michael

[russ69]

Michael,

I had to make a claim some years back for the Northridge earthquake, what would you like to know?

Thanx, Russ

[colterphoto1]

because of the possiblity of errors and omissions on the part of my agent, I think I need to talk to an industry professional or someone who has been through this.

Basically my entire roof was depreciated because of prior wear in probably 10% of the total surface. Agent never gave information that if I'd make that repair I could get back on replacement cost coverage. Now after hail damage I have $4800 check out of a $12,000 roof.

[Islander]

With typical insurance company thinking, you're lucky they didn't say the roof was in poor condition because you left it out in the rain...

[T2K]

My house was built in 1995. Last year we had a pretty nice hailstorm. I called a roofer for an inspection and he said I had hail damage and needed to replace my entire roof. I called my agent and the adjuster agreed and paid me the cost of a new roof.

My understanding is that replacement cost insurance should pay the cost of a replacement roof, not the depreciated cost.

Why pay for replacement cost if that allows for depreciation? I had a lightening strike years ago and my insurance co paid me the amount on the receipts that I furnished for the cost of the TV and a VCR. IOW they 'replaced' them.

Don't know if this helps but good luck to you.

Keith

[russ69]

OK, this is how it works, if you have a 10 year roof and it's damaged in year 5, they generally will pay for half the cost of the roof, less the deductible. That's they way they calculate things.

On the other hand the check they sent you is just an offer and you can make a case that your roof was worth more or the depreciation was less. Usually if you can make a good case they will throw a little more money your way, or wave the deductible. A phone call is all it takes. It's your call but if your roof is 30 years old, don't count on much reimbursement.

Good luck, Russ

Insurance is a funny deal, we had damage to a small bit of carpet but they paid for new carpet for the whole house because a new piece wouldn't match. So sometimes it works in your favor and sometimes it doesn't. I had a $60,000 loss of mostly contents and was paid for just about every penny. Go figure?

[Jeff Matthews]

Michael, I'll do my best, given your very limited description of the issue.

First, plain-old "failure to tell" by the agent is generally not actionable. There first has to be a duty to speak before there can be a case for negligent misrepresentation. The agent does not have a duty to make you aware of all the policy's terms and conditions. You should have received a copy of your policy back when you bought it, and it was incumbent onb you to read and understand it. (Now, I'm a lawyer, and personally, I don't think insurance policies are written to be understood).

Now, as to replacement cost, did you have replacement cost coverage? This is a rider that "ups" their coverage for an additional premium. If so, there should not be a depreciation deduction.

If you did not have replacement cost coverage, then depreciation is how it works. They pay the value of what you lost. That value includes an offset for depreciation.

If you had a bad spot in your roof, the value of the rest of the roof might or might not be affected (reduced) by it. If the pre-existing damage could NOT have been repaired without ripping out and replacing the rest if the roof, it is arguable that the damage to that 10% area actually depreciated the value of the whole.