 Whether you own a commercial or residential property in West Palm Beach, Florida, you will need to have insurance to cover your property in the you sustain property damage.
Understanding your policy and the coverage it provides is critical when it comes to filing a property damage insurance claim. What is Depreciation? Although your policy may provide for replacement cost coverage (RCV) when you have property damage, your insurance company can deduct depreciation before they apply a deductible when issuing payment for the claim. This is considered an Actual Cash Value (ACV) payment. Depreciation is usually based on the age of the damaged items and their expected life span. Items like drywall, paint, and cabinets for example. When the depreciation is withheld from the claim payment, the insurance company will provide instructions on how to recover that amount. Recoverable Depreciation In most cases, the depreciation will need to be incurred for the insurance company to release the withheld amount. Insurance companies vary when it comes to what they request for proof of repairs to release the withheld amount. Some may only require that the repairs be completed and that you provide photos showing proof that repairs were done. More often than not, you will probably be required to provide more extensive documentation that not only shows proof that the repairs were completed, but also proof that the repairs were completed for the amount the insurance company estimated, before the deduction of the depreciation and applied deductible. Non-Recoverable Depreciation Some policies are issued with non-recoverable depreciation which means that the depreciation that is deducted cannot be recovered or released. We have seen property owners choose to have this kind of policy to help lower their insurance premiums. This sometimes comes in the way of ACV coverage for their personal property. As I wrote in a prior blog, there can also be endorsements or limits within the policy that would place ACV coverage on the building, such as a roof deprecation schedule, that limits the recovery based on the age of the roof. If you have a new, underpaid or denied insurance claim, we provide free claim reviews and may be able to help. Contact us today.
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 You may need professional help with your insurance claim for many reasons. The three most common reasons are claim delay, underpayment of a claim, or no response from the insurance company.
Additionally, property damage claims can be difficult for a policyholder to navigate. There are different policy coverages, limitations, and sometimes exclusions within the policy you may be unaware of. In some commercial insurance policies, there may be a separate deductible for each coverage limit. There are also instances when the deductible is higher than the damage, and it may not be beneficial to file a claim. Claim Delays The insurance company has sixty (60) days from the date they receive your claim to provide you with a coverage decision and either pay or deny the claim. There are circumstances when further investigation of a claim is requested by the insurance company. When the claim is filed but the source of the damage is unknown, they can request an additional inspection by their expert to determine the cause of the loss. This does not mean that you will be covered for the damage. If you do not know whether you are covered or what has caused the damage, you should hire an experienced and licensed public adjuster to see if you have a covered claim. Underpayment Of Insurance Claim We receive many calls from policyholders, largely in part because they have not received enough money for their damage and cannot repair the property. This can happen after a catastrophic event when insurance company resources are limited, and claim payments are being made without further investigation. Also, there may be additional coverages, such as Personal Property or Additional Living Expenses that have not been addressed. Lack of Communication Per Florida Statute 627.70131, an insurance company is required to respond to your claim inquiry within seven (7) days. This includes emails, phone calls, and/or letters. If you have not received any communication from your insurance company, you have the right to file a complaint with the Department of Financial Services at the below link: https://apps.fldfs.com/ESERVICE/Default.aspx If you are unsure if your damage is a covered claim, or what the cause of damage is, you should hire a licensed public adjuster. An experienced and knowledgeable public adjuster will have the resources and tools to determine if you have a covered claim. If you have any questions about coverage or a new or underpaid claim, Reliant Insurance Adjusters have the knowledge and experience you need. Call us at (561) 288-6434 or contact us here. |
