It’s a good thing that most insurance policies nowadays include an element called “wear and tear” coverage. This type of coverage provides coverage for almost all types of damage that can happen to your home, even if it was not damaged during a fire. But what does this mean exactly?
The first step is to contact your insurance provider or your agent who sold you your policy. If you’ve had your policy for a long time, you may be able to skip this step. However, if you are just starting out with your insurance, it’s important to ask about this right away. The amount you are paid for this type of coverage usually depends on the type of coverage you already have – complete coverage or basic. Basic or complete coverage will cover the cost of replacing or repairing your house and any damaged or lost items – the exact amount that is agreed upon in the contract between you and your insurance provider.
The second step is to contact a public adjuster – this is someone from the insurance company who is in charge of making the actual loss assessment. He will determine the total loss and property damage based on the information he receives from your insurance provider and the fire department. Usually, the public adjuster will not be able to give you an estimate of the insurance claim – he has to do this himself. This is why it’s very important that you know the name and number of the insurance adjuster in your area.
Once the public adjuster makes his assessment, he will file an insurance claim with your insurance provider. The policyholders have three months to make their own decisions on how to settle this claim. If the policyholders still don’t want to hire an insurance adjuster, they can consider hiring their own lawyer, which is a good idea if the sum being claimed is higher than the insurance provider’s limit of liability. However, this should only be considered if you have hired an insurance agent to represent you.
Another good reason to consider hiring a lawyer is if you are under pressure from your insurance provider to make a quick fire insurance claim. If this is the case, you need to make sure you have legal representation to protect your interests. Hiring an experienced lawyer can also be helpful if you are not represented by an insurance agent and face overwhelming odds of winning your case.
There are ways for policyholders to reduce the costs of home owner’s insurance in Florida. One of these is to fix the damages that were caused during the fire. If there is smoke damage on the building, it is mandatory for all policyholders to repair this within a period of one year. Similarly, if there is water damage, it is necessary for the policyholders to fix the damage within a short period of time.
Some insurance companies give a reduction on premiums to policyholders who agree to accept loss replacement. This means that if the insured party agrees to receive loss replacement as a replacement for the damaged property, the insurance company gives them actual cash value coverage instead of replacement cost coverage. This actual cash value coverage will be based on the market price of the destroyed property as of the date of the loss. Therefore, it is important for you to verify this type of replacement coverage with the insurance agent. In case you need to get a new appraisal for the property, you can also ask for this in writing to avoid unnecessary delay in the process.
Most insurance companies offer the replacement coverage as a form of added security, because it is believed that there is a certain percentage of probability that the insured party might not be able to find another similar property to replace the one lost. It is therefore advisable to purchase actual cash value coverage. The price of the replacement policy is usually based on the current market value of the property in comparison with the price agreed in the original agreement between you and your insurance company. If the market price of the property has dropped since the original agreement, the insurance company will not charge an extra replacement cost on the policy.
