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How is property value calculated on a homeowner’s insurance claim?

admin — Mon, 22 Jun 2009 02:28:27 +0000

I have an older laptop that was damaged during a hurricane. Shingles were torn off my roof and water got into my home. The fair market value is probably only about $200 – $300. However, I probably won’t be able to find the same make/model laptop. How will my insurance company (Farmers Insurance) reimburse me for my loss?

You should really ask your agent that question, but let me explain to you how it worked with a claim that I recently handled for a client.

They had replacement cost so it will depend on if you have replacement cost and the claim’s process at Farmers (I’m not too sure how they do it). So this case is just an example.

For my client, any items that became less valuable as time passed (depreciated) were paid out as follows:

What you paid for it (example, $800) minus the deprecation value (example, 40% or $320) = what the company initially pays you (example, $480). Now you go out and buy a like item…it doesn’t matter if it’s the same brand, speed, whatever, it just has to be like. So you buy any other laptop and give us the receipt. We pay you anything you paid over our initial payout ($480) up to what you paid for your original laptop ($320 extra).

So if you buy a new laptop for $300, we give you nothing extra and you just pocketed $180. If you buy a new laptop for $700, we give you an extra $220 and you come out even. If you buy a new laptop for $1200 we give you and extra $320 and you had to spend $400 out of pocket to upgrade to the new laptop.

I hope I explained that well for you, my client had trouble grasping it and thought she could somehow profit from the claim (albeit she has a few bolts loose).

Farmer’s may vary from the company I work for, but that’s how we handled it.

Furnace needs replacing, will homeowner's insurance cover it?

admin — Sat, 20 Jun 2009 01:28:27 +0000

My mother in law's furnace went out the coldest day of the year, will homeowner's insurance cover the 3200$ + it will cost to replace it? State Farm is the insurer.

Sorry; it won't. The furnace had to be damaged as a result of a covered peril. Wear and tear is not covered under your policy. I am in the same predicament. I will need a new furnace within a year according to my oil company. What a horrible expense!

Will decrease in homeowner’s insurance premium decrease my monthly payments?

admin — Wed, 17 Jun 2009 22:22:44 +0000

I recently got my homeowner’s insurance renewal and saw that my premium went up. I shopped around and found another company that is providing more coverage and my premium is $300.00 less than that from last year. I know my actual mortgage payment will remain the same but will my monthly payment which includes my escrowed insurance and taxes decrease???

It may, but probably not until your escrow balance is reviewed and then you may get a check for the extra money in your escrow account and at that time your payment may get adjusted. At least that is how mine works, but it only gets review once a year regardless of changes to taxes or insurance.

Which company has the best homeowner insurance rates in South Carolina for someone with a bankruptcy?

admin — Mon, 15 Jun 2009 21:29:33 +0000

State Farm has gone crazy on their rates. Been with them for 8 years and never filed a claim.

I don't know.

My townhome property manager refuses to provide me a copy of homeowner insurance.?

admin — Sat, 13 Jun 2009 19:34:24 +0000

The home insurance was sent to me in June. I lost it. In September, I refinance the house and call the property manager to request a copy of it. She refuses to provide me one and said that it's her rule. She only gives the copy to lender, appraiser, but not me: the home owner. What should I do? Is she a dictator or am I asking too much?
I have no glue who the insurance company is. That's why we have property manager to take care of that for us
This is a big townhome complex of 91 units. We pay home onwer association fee monthly, which takes care of the outside maintenance of the house, public pool, club house, etc.

Have you tried contacting the insurance company directly? She said its HER rule, not their's. Good luck!

What's the difference between Mortgage Insurance/Hazard Insurance & Homeowner's Insurance?

admin — Fri, 12 Jun 2009 07:02:21 +0000

In my housing loan application it gives the breakdown of the principal mortgage payment, taxes, hazard insurance and mortgage insurance. What is the mortgage insurance? It's an additional $70 per month.

Mortgage insurance, is PMI – if you put down less than 20%, YOU pay for the insurance that covers the bank, if you default on the loan. You pay this, until you have 20% equity in your house.

Hazard insurance is mortgage talk, for insurance that covers your house if something happens to it. Homeowners insurance, is insurance talk, for the cheapest kind of policy, that covers your house if something happens to it.

So. Mortgage insurance is PMI, and hazard and homeowners insurance are sort of the same thing.

Does anyone works with Homeowner Insurance Company?

admin — Tue, 09 Jun 2009 16:44:25 +0000

I received a letter from my Insurance Company asking me for a sale or isntallation documentation of my windows and or other opening protection shwoing the wind speeds that the protective device can withstand. I am the first owner of my house and there is no claim. Why they are asking for that?

Well, I'm GUESSING you're in Florida. And I'm guessing that the insurance company is trying to cancel your policy. And your failure to provide that information will give them the grounds they need to cancel the policy.

What they're doing is "reunderwriting" their homeowners book of business. Likely they sent that letter out to every single homeowners policyholder they have. If half the people don't return the letter, well, they've just been able to cancel half the homeowners policies in a VERY high risk area.

You're going to have to dig that information up, even if it's from the builder. OR replace the windows with documented windows. Or prepare to be cancelled, and move to Citizens – the FL state fund.

YOUR agent can give you an answer, and they'll "pretty it up" a bit more. I know mine is a blunt answer, but I do think that's the bottom line.

As a landlord of a paid off home do I need to have a homeowner insurance policy?

admin — Sun, 07 Jun 2009 18:12:50 +0000

If there's a fire, or for any other property related reason,tenannts die or secure a big loss, what happens to the land lord? Is the landlord legally liable for all the losses? What happens if the tenant sue the landlord?

You are not required to have insurance on any property. The reason everybody thinks you are required is no bank will ever lend on a property unless you have insurance.

However, you should always have insurance on any property. This is especially true on rental properties. Your scenarios of a fire, death etc can reasonably happen. Whether it is your fault or not you will have the cost to defend yourself so the insurance is worth the cost for defense. You will also want to rebuild which you will need the insurance monies for.

I own rental property and i had a tenant slip and fall on my property. It was total BS but everyone has their right to sue. The tenant sued for a living and had four other similar cases pending. Three years later and 30K in legal bills the case was settled against my wishes. The insurance company paid the tenant 10K to go away. I still had the headache of dealing with the lawsuit and had to pay my deductable of $2,500. I figure it cost me $10,000 between my time and deductable. Without insurance it would have been $40K minimum and probably more.

How much do you pay for homeowner insurance?

admin — Sat, 06 Jun 2009 06:49:32 +0000

What state do you live in also.

$297 per year on a 1/2 duplex in Wisconsin worth $160,000

What benefits does a homeowner have with homeowners insurance?

admin — Fri, 05 Jun 2009 01:44:26 +0000

With all that is going on…I want to make sure my everything is covered…in what cases other then flood,nature disaster..are you covered?

Newsflash! You’re not covered for flood, with homeowners insurance! Flood is SEPERATE. If you’re in Hurricane Alley, you also MIGHT need a seperate wind policy, if wind is excluded on your homeowners policy.

You need to talk to your agent before you buy your policy, so you know what is covered, and what isn’t.

Typically, you’d be covered if someone sues you because they fell on your property. You’d be covered if someone breaks into your car and steals your stuff. You’d be covered if you have a fire in the home. You’d be covered if, well, an alien spaceship landed on your house causing it to collapse.