Arguing with insurance company?

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  • Arguing with insurance company?


Answer #1 | 18/12 2013 09:47
A third of the claim sounds like Actual Cash Value, which is all they would be required to pay. Think of it like a auto insurance claim. If you hit and total a car from 1995, that person doesn't get a brand new one, they would get the "Actual Cash Value" of the vehicle when the claim was settled. You could have "Replacement Cost Coverage" on your contents and coverage for Water/Sewer Backup (**not standard on all policies), then your company would pay the claim. I would call my agent if I were you.
Answer #2 | 18/12 2013 16:50
Try to negotiate. You might be able to meet somewhere in the middle. Do they really owe you new stuff for old? If you both are stubborn, threaten them with a lawsuit. (you will probably wind up with less money, when all is said and done, but you might feel better--kinda like cutting off your nose to spite your face)
Answer #3 | 18/12 2013 19:16
Every item gets depreciated. Just because it will cost you $300 to replace the items doesn't mean that's what the items are worth. For example, clothing 30% depreciation + 10% per year up to 70% depreciation. @Casey Y, the term Actual Cash Value means full replacement price ie zero depreciation.
Answer #4 | 18/12 2013 19:56
Yeah, you're probably running up against some governmental immunity laws. The other issue is, legally, if someone else DOES have to "make good", they only EVER owe you for the actual cash value - not "replacement value". The only way to get "replacement value" is under your OWN policy. The other guy's insurance - car, liability, whatever - is never responsible for more than the actual item was worth at the time it was damaged. Nothing you can do, will get "replacement cost". You will only get actual cash value, which is, replacement cost LESS depreciation.
Answer #5 | 18/12 2013 21:47
For such a small amount, it is probably not worth suing in a "real" court. If you want to force the issue, try either small claims court or binding arbitration. However, it's actually better to have the insurance pay nothing. Having the insurance pay anything, even just one dollar, can increase the cost of having insurance for the next few years, so it may cost you more than you get from them now. Also, if you do it too often, then they just cancel your insurance. So, save the limited number of claims that you can file for when you really need insurance to pay a lot for something big.

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