Answers to Your Questions about Hurricane Insurance Claims Part 1

TL;DR

Insurance policies typically include replacement cost coverage, which means that the insurance company will replace damaged items or structures with new ones. It is important to understand the coverage limits and additional coverage options provided by the policy.

Transcript

• Vinyl siding too. And a great point, your policies, most, every one of your policies, is a replacement cost policy. That means the insurance company, and here's how I tell the jury. I give you my opening statement on a roof case I just did. Insurance company issued this policy when the roof was 18 years old. And when they did that, they said on o... Read More

Key Insights

• 🤑 Insurance policies typically have replacement cost coverage, ensuring that damaged items or structures are replaced with new ones.
• 👨‍💻 Code enhancement coverage is often included in policies to cover the cost of bringing the property up to code.
• 🛄 Homeowners should be cautious when assigning their entire claim to contractors. Some contractors may take advantage of this and gain control over the entire claim.
• 👮 In case of a total loss or significant damage, the insurance company is obligated to pay the policy limits, but coverage for additional expenses, such as debris removal, law in ordinances, and alternative living expenses, may vary.
• 🤪 The Florida Insurance Guarantee Association (FIGA) covers claims if an insurance company goes under.
• 💨 Distinguishing between flood and wind damage can be determined through forensic examination and expert analysis.
• 💌 Homeowners should avoid making assumptions about the cause of damage and let the insurance adjusters and experts determine it.
• 📞 It is crucial to thoroughly review insurance policies and seek legal advice to ensure they receive the full coverage they are entitled to.

Questions & Answers

Q: Are insurance companies required to replace damaged items or structures with brand new ones?

Yes, most insurance policies have replacement cost coverage, which means that the insurance company is obligated to replace damaged items or structures with new ones as long as the policyholder pays their premium.

Q: Is it fair to receive a brand new item or structure as a replacement, even if the original was old?

Yes, replacement cost coverage is included in the premium paid by the policyholder. Therefore, it is fair for them to receive a brand new item or structure as a replacement, regardless of the age of the original.

Q: What if the county requires all items or structures to be replaced if one needs to be replaced?

If the county requires the replacement of all items or structures due to building code regulations, the insurance policy may offer code enhancement coverage, which provides additional funds to cover the cost of bringing the property up to code.

Q: When should a homeowner involve a lawyer in a claim dispute with their insurance company?

If the insurance company denies a claim, it is advisable to consult a lawyer. Public adjusters can assist with negotiations, but if the claim is denied and litigation becomes necessary, a lawyer's expertise is required.

Summary & Key Takeaways

• Insurance policies, including homeowners insurance, often have replacement cost coverage, which means that the insurance company will replace damaged items or structures with new ones.

• Replacement cost coverage applies to various elements, such as roofs, siding, and plumbing systems.

• Policies also often include code enhancement coverage, which covers the cost of bringing the property up to current building codes.