FAQS

I have a loss. What do I do next?

Most property insurance policies have a section entitled “What to do in case of a loss”. In the event of a claim, review this section of your policy for specific steps to take until your adjuster arrives. Each policy varies, but common steps include:

1. Give prompt notice of the loss to your agent and/or the insurance carrier.
2. Cooperate with all persons involved in the claims process.
3. The insured should take all reasonable means to protect covered property from further damage.
4. Most claims will require the submission of a properly completed proof of loss form within a specific time frame.
5. Retain all claimed property on site for inspection until the company and/or adjuster has authorized disposal of the damaged property.

I have damage to my building. Can I choose my own contractor?

Yes. Most carriers will require at least 2 detailed repair estimates that contain itemized labor and material costs. The estimate should reflect standard local construction costs. In the event that one or more of the contractor estimates contains scope or price issues, your adjuster will work with the builder/contractor to reconcile these differences. In most cases, this adjustment process will result in an agreed price with your builder of choice.

What does “Replacement Cost” mean?

The term “replacement cost” is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable like, kind & quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Refer to your policy for the exact definition and explanation of replacement cost. Most insurance policies pay only the actual cash value (acv) at the time of loss. Replacement cost is normally paid once the property is replaced and costs are documented.

What is “Actual Cash Value”?

The term “actual cash value” is normally defined in the policy as replacement cost less depreciation.

So What’s the Difference?

The only difference between replacement cost and actual cash value is a deduction for depreciation. However, both are based on the cost today to replace the damaged property with new property of like, kind & quality.