Insurance Law/siding claim

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Question
Hi, my house has aluminum siding.  I am in Maryland.  One side was damaged due to a storm.  I have an endorsement I pay extra for with Erie Insurance, to match the siding if it is no longer available.  Erie has agreed to replace the siding for the entire house because it is no longer available.  I am replacing with vinyl, much less expensive than aluminum.  Do they need to pay me to replace aluminmum, or just the amount to replace vinyl?  The claim rep wrote an estimate for aluminum and thus far has only paid for the one side.  He plans to pay the balance upon completion of work.

Thanks!

Answer
Scott,

You are lucky to have the endorsement, otherwise you may have ended up with mis-matched siding.

Under the terms of your policy, you are entitled to receive the "value" of the aluminum siding BUT that would only apply IF you were replacing with aluminum itself. Since Erie has agreed to replace all of the siding, you should demand that the adjuster go ahead and prepare an estimate for the full replacement cost of all of the siding as ALUMINUM (make sure they include all the components necessary), then they will depreciate that replacement cost based on the expected life-span of aluminum to arrive at the "actual cash value" (ACV). That would be the amount that they are required to pay you up-front. It may turn out that would be enough to cover the cost of the vinyl siding in full and in that case, you may not have to contribute your deductible portion to the repairs.

In the manner in which they are progressing at this point, what will happen is that they will require you to provide a copy of the final invoice for replacing with vinyl, subtract your deductible and the amount they paid up-front and pay you the balance at that point. You are still out your deductible that you will have to contribute to the costs of the repairs.

Does that help? I know it is kind of confusing.
Let me know if there is anything else you need.


Kevin Hromas
JD, EGA, RPA, PLCS, CPIU, HCRI-R/C, WIND® Umpire/Appraiser
Kevin Hromas & Associates
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Kevin Hromas

Expertise

I am a licensed, executive general adjuster currently holding a Texas resident P&C license (614250), New Mexico non-resident all lines license (248774), Oklahoma non-resident P/F/M license (A299561), Florida non-resident P&C license (E117051) and a National Flood Insurance Program certification (06040100). My areas of expertise involve property and casualty issues in both residential and commercial policies with regards to claims practices and issues. I deal extensively with Lloyd's of London commercial policies and various domestic carriers for residential policies.

Experience

After a 20 year career as a General Contractor, I was employed by Allstate Insurance as an adjuster in Texas, holding various postitions within the property claims department. After leaving Allstate, I specialized in handling losses associated with major catastrophes through-out the country. (Hurricanes Isabel, Charlie, Wilma, Katrina, Ike, etc., hail storms, floods.) I am currently retained as an expert by multiple insurance defense firms in Texas for issues in litigation. I am also a certified Umpire for formal appraisals.

Organizations
Member - Society of Registered Professional Adjusters Fellow - Council on Litigation Management Member - Property and Casualty Association Member - Texas Independent Insurances Adjusters Association Member - National Association of independent Insurance Adjusters Member - Houston Claims Association

Publications
Claims Magazine (www.ClaimsMag.com and then search 'Kevin Hromas' for a full listing of articles and quotes.) www.ClaimsPages.com, www.ProAdjuster.org, www.KevinHromas.com

Education/Credentials
JD - University of Houston Law Center - 1992 BA - Southwest Texas State University - 1980 AA - South Plains College - 1977 PLCS - Personal Lines Coverage Specialist

Past/Present Clients
Certain Underwriters at Lloyd's, London, Fulbright & Jaworski (Law Firm), Bracket & Ellis (Law Firm) Thamm & O'Briant (Law Firm) Sheehy, Ware & Pappas (Law Firm) Walker, Wilcox and Matousek (Law Firm) Financial Guarantee Underwriters

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