Tornado hit home and total loss ? - Lending 3

Tornado hit home and total loss ?

House will prob. be declared a total loss…what does that mean? If declared that term will the dwelling coverage of the insurance be paid out to the max as well as the contents? There also is a loss of use amount on my insurance policy, will that be paid out to me in full/I have to pay first and then get reimbursed. Not much can be done since the electric can’t even be turned on till next month and many homes have a do not occupy sign posted…IT won’t be a quick fix. CAn an upcoming purchase of a rv/5th wheel travel trailer be placed under a loss of use claim since living in a 1 room hotel is just difficult w/ a family? Will the insurance company make offers on total loss in terms of what will be paid out or is it an auto max payment of what the dwelling covers? Or does it go beyond the dwelling coverage if the fair market value is used since repairing it into what it used to be exceeds the dwelling coverage amount? thank you

Home Insurance

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  1. Steve S, December 23, 2011 8:20 am - Tornado hit home and total loss ?

    Work with you insurance agent to understand the companies policies for claims. You should be entitle to like kind like quality replacement. The only way to get policy limits is to have the home rebuild like it was. If you choose to walk away you would get the actual cash value. That would be the difference between the replacment cost and the depreciation. As for loss of use you should be entitled to like kind like quality place to live. Find a home. I dont think they will give you an RV or 5th wheel. (although you may be able to rent one), As for your personal property state recording what you own. This will be required. The company wont offer policy limits unless you can prove that you are entitled to total limits. Let me also say that I am sorry to hear about your loss and wish you the best. I am an agent and try to educate my insureds and can truely feel your pain for what you are going through. Things will get better but it may take a little time. Talks with you agent to make certain that things are still moving forward.

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  2. Queen B, December 23, 2011 8:52 am - Tornado hit home and total loss ?

    well i have to disagree with the above on one item. you would get replacement on the home NOT actual cash value. homes do NOT depreciate they appreciate. homeowners policies are written on REPLACEMENT value. you are also entitled to the full amount of your contents coverage. i know people who have had a total loss of the home and I can’t imagine ANYONE who can remember EVERYTHING they had in their home unless they were smart enough to do an inventory tape right before the loss. Not too many people do. i agree you need to contact your adjuster on this and ask him anything you want answers to. if you are insured with a reputable company you will get replacement on your dwelling and contents and they will do it as quickly as they possibly can. I’m sorry for your loss…God bless!

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  3. tim t, December 23, 2011 9:05 am - Tornado hit home and total loss ?

    well both the above are close to being correct it really depends on if you had replacement or actual cah value on your home some people choose actual cah value acv because its cheaper and you gotta watch agents they will do that to you to make a sale ive see lots of my clients come in and have acv when everyone should have replacemnt cost an on your personal property its the same deal depends on what coverage you have if you walk away they will pay you depending on what coverage you have with the loss of use they should have already rented you a place to live and frniture and all the ness. things you need to make you comfortable i has a clients home burn recently and i had thenm find a home they wanted to rent and i rented it for them and rented them furniture and had them set up great be careful not to rent a expensive home just in case you only have a a set amount you have to use some companies will have an unlimited amount til they get your home rebuilt or whatever you guys decide you and the agent and some companies only have a set amount that you can use caqll your agent and get a copy of your dec. page so you can see what coverage you have im so sorry this happened to you if i can help please email me at timt32000@yahoo.com and ill try to answer your questions best i can and i will go over your coverages with you to see what is covered and how much you coverage you do really have your agent should be intouch with you daily to help you im always in touch with my customers when some thing like this happens i want to make sure they r safe and comfortable go online you can pull up your policy if you have your policy number and i can help you more

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  4. mbrcatz17, December 23, 2011 9:57 am - Tornado hit home and total loss ?

    Total loss means the cost to fix your house equals or exceeds the policy limit.

    What you get, depends on your policy. If you have replacement cost on the dwelling, AND you decide to rebuild on that site, you’ll get up to the policy limit. That loss of use will be used to rent a trailer, or possibly buy that RV, so you can live on site during construction. But if the insurance company buys the RV for you, they’ll own it when construction is complete, most likely. You’ll have to discuss that one with the adjuster, but I can’t imagine an RV is more comfortable to live in than a hotel room.

    If you’re NOT going to rebuild, you’ll get the depreciated value. The check will be made to you and your mortgage company, hopefully it will pay off the mortgage, and you’ll get what’s left. “Loss of Use” will be limited until the claim is settled for the building – then will cease, as you’ll have to rent or buy a new house.

    Fair market value is not a common valuation for homeowners. And unless you have an overriding valuation endorsement on your policy, you won’t get more than the policy limit.

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  5. Tori, December 23, 2011 10:56 am - Tornado hit home and total loss ?

    When I had my total loss….
    Allstate set an amount for me to rent a place (just like what I owned) and they gave that to me each month – and I had the option to rent a smaller place & pocket the rest (loss of use)

    Dwelling should be rebuild exactly as it was minus you paying your deductible…if you had replacement cost.
    If you had Actual Cash Value – they might cut you a check for the worth of your home – with depreciation….

    Contents – They will cut a check…with depreciation for all the contents you can list/remember
    and if you have replacement cost – as you replace the items & send in the receipts…they will reimburse you the different to pay your full replacement cost.

    Good luck…remembering everything I owned was the biggest challenge!!! But you have 3 years to finish out your claim

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