Question about insurance procedures and replacement choices

cinnamonsworldAugust 5, 2010

Say most of a bathroom has to be replaced in an insurance claim and the value of all the components that need to be replaced is determined as $x (by both their adjuster and your repair guys).

Two questions:

- Is it the case usually that if you put in a replacement that cost less than $x, they don't pay you the additional value (just what you actually replace)?

- How much latitude do you have to reach $x but going cheaper on some components and more on others? (Say I found some great tile cheaper than what I had, but want a sink more expensive than what I had, and the whole project still equals $x. They don't say "you can only be reimbursed for a sink up to $a and a toilet up to $b," do they?)

Thanks.

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kudzu9

This will vary depending on insurer. For the best answer, ask your insurance company.

    Bookmark   August 5, 2010 at 1:36PM
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yborgal

Ditto what kudzu9 said.

But they may just give you a check in the amount of $x for you to replace fixtures, tile, etc of your choosing.

    Bookmark   August 6, 2010 at 6:58AM
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brickeyee

"But they may just give you a check in the amount of $x for you to replace fixtures, tile, etc of your choosing."

And if the check is large enough it will be payable to you AND the owner of any note on the house.

    Bookmark   August 7, 2010 at 2:54PM
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texasredhead

If you have a mortgage on your home, the lending company often will get involved in these issues to make sure their investment is protected. In 1975 we had a major fire. State Farm hired a contractor to do all the work. They made payments to the contractor and the then lender. The lender inspected the work before they would sign off to the contractor.

    Bookmark   August 9, 2010 at 7:33AM
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gryane

we lost our entire house in a wildfire and I've learned more than I want to know about insurance! What would most likely happen is the amount you will get will be determined by what you had before and how much your home was insured for ($ per sq. ft). It helps to hire a public adjuster who will be on your side in dealings with the insurance company. That way the insurance company will have a harder time lowballing you.

Also, the money will most likely be put into an account that has your lender's name on it as well. We have to submit all our invoices to the bank before we can access the money. They want to make sure you are spending the money to rebuild the damage and not taking a vacation to tahiti! Any money left over should be returned to you after you pass final inspection.

Hope this helps.

    Bookmark   August 26, 2010 at 2:19PM
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Chemocurl zn5b/6a Indiana

When I had my roof replaced due to wind, The adjuster gave me an estimate, and the roofer gave me an estimate, and they were about the same. I had to mail the paid receipt to the insurance company, and then they issued a check written out to me and a credit union, where I have a line of credit approved, though no amount is owed.

Some things were higher on the roofers estimate, and some things lower. He substituted a ridge vent in place of some electric ones I had.

Is it the case usually that if you put in a replacement that cost less than $x, they don't pay you the additional value (just what you actually replace)?
True, they won't give you any more than what is actually spent.

How much latitude do you have to reach $x but going cheaper on some components and more on others? (Say I found some great tile cheaper than what I had, but want a sink more expensive than what I had, and the whole project still equals $x. They don't say "you can only be reimbursed for a sink up to $a and a toilet up to $b," do they?)
I don't imagine they care, since I doubt if they have 'exact costs on what your existing fixtures cost new, but I'd ask them just to be sure.

    Bookmark   September 3, 2010 at 9:03PM
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