AboutJames R Carrier Expertise I'm an insurance adjuster, I'm able to answer questions regarding coverage, damage valuation, or anything to do with property & casualty in the State of Michigan. In other states I can answer general questions but insurance policies are written slightly different depending on insurance law in a particular state. Most questions however I would be able to answer or have the ability to get an answer.
Experience 20 years as a licsensed adjuster, handling 1000's of homeowners claims in Michigan, and Louisiana (Hurricane Katrina).
Education/Credentials Business degree with an emphasis on accounting from Arizona State University, graduating in the Fall of 1984.
Question QUESTION: We have a house in Goochland County in Virginia and our barn burned due to recent lightening. Beside insuring the house that come with other structure coverage I paid additional for barn coverage as well. In this barn we stored lawn mower and all kinds of equipment plus a tack room with a lot of equine activity items. I was told the insurance company will pay replacement cost minus depreciation. If you end up purchasing the item they will pay the difference up to four times. It is going to be very hard to remember exact date when these items were purchased. Also, what will consider personal item contents that should fall under main house coverage and what falls under the barn contents? Or they all will be considered personal contents.
ANSWER: Ali,
Sorry about your loss. The building coverage is usually 10% of the coverage of the main structure you insured. It is under appurtenant structures on the policy. The amount of coverage seems though to have been increased to your rider.
The contents of the barn are covered by the main houses contents coverage, provided this structure is at the same physical address as the main structure. All this it seems you knew, I'm just mentioning this for the readers.
I am not familiar with a limit of 4 times, I know of no such limitation. I again so you know are familiar with the laws and rules in my home state of MI. In general they will be the same throughout the country, this however could be an example of differing state laws.
The exact date of purchase is not at all important. It is important to have an approximate age though for the purpose of depreciation. I have also seen in practice the date used working against an insured when the insurance company wants to play hardball. If you say you bought all of your things in your home in the last year to make your depreciation lower, they can get ugly and make you explain where you got all the money to purchase all these things in the last year. That is not at all common. Many columns the insurance company want you to fill out, I believe are just columns to make your task seem more daunting and make you want to give up. The only columns necessary on a personal property inventory are:
1. description of the item
2. the replacement cost
3. the approximate age (for determining depreciation)
the approximate age of an item can be 1 year, 2 years and so on,
depreciation is higher and at a greater rate for clothing than say appliances. Depreciation is something that can be negotiated. It is the key figure in a successful outcome. I know that you will not get back a great deal of your depreciation, not matter your original intent. So the ACV (actual cash value) is the key figure here that they pay on ACV is the RCV (replacement cost value) less depreciation equals ACV.
Your coverage extends to all the items you mentioned in your question. Inevitably the question of motorized vehicles is raised when speaking about a garage/barn fire. Any motorized vehicle used to maintain the property is covered. Your original question asks should it be under barn or main house. It shouldn't affect you either way if it is put under the main house coverage or the rider, remember you don't your main house coverage can be used to the limit and your rider coverage for contents can be used to the limit.
If I missed something or didn't make something understandable please contact me privately at jimsbook@hotmail.com.
Good Luck,
Jim C
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QUESTION: Thank you so much for your clarification. It is going to help me I am sure of that. I have another question which I think I have to have.
The main house and barn are in the same property. Just a month ago I switched insurance company from Nationwide to Loudoun Insurance Company. Just as a reminder, there is other structure coverage up to a limit on the main house, in addition we got separate rider for the barn for up to $60,000 structural damage limit. I know for instance replacement cost could be up to 125% or 130% of coverage. Since we just switched the insurance company a month ago do you think they are going to stick with $60,000 maximum limit or they could go higher if replacing the barn is going to cost us more than $60,000?
A quick estimate on the contents could add up to $30,000. Do you think it makes sense to higher a public adjuster? How do they charge and if it is based on percentage what is the percentage? Do I need to ask these public adjusters if they have worked for my insurance company before in order to avoid a conflict of interest?
Answer Ali,
Although RC on the house can go to 125% or 130% of the amount listed, each policy differs. The rider is usually specific on amounts however it would be extremely easy to find out by reading the rider. My initial question is can I add the appurtenant structure amount to the 60k rider.
Public Adjusters are not always necessary, I think each case is different from the next. I find you to be a strong candidate for a Public Adjuster. My reasoning is that research needs to be done on top of claim presentation. I find you quite knowledgeable in regards to this task but I good PA would be a great fit for you. Over the years I've found that the more educated you are about what your facing the more you understand the need for an adjuster. People with no concept of the task in front of them never hire PA's because the insurance company adjuster tells them that it makes no sense to pay a fee to someone when an adjuster is included for free from the insurance company. That is all the logic one needs to make a decision on whether or not to hire a PA if you haven't got a clue.
Your question about if they worked for your insurance company before is not at all something that would cause a problem of any kind. I would be happy to research your area and find a good fit for you. If that interests you please contact me at jimsbook@hotmail.com privately. I look for certain qualities and know the proper questions to ask to find out who would be best to handle your claim.
Again Good Luck,
Jim C
