AboutDeanna Terry Expertise I am qualified to answer questions about home owners personal property claims, especially fire claims. I am able to answer questions about A.C.V vs. Replacement Cost as well as the reality behind cleaning and restoration. I can answer questions regarding policy compliance as well as questions of what to do when you don't agree with the insurance company's adjuster.
Experience I have over 5 years of experience adjusting claims for home owners, not insurance companies. I was also a fire victim. I am the founder and President of a non-profit organization that assists fire victims in specific counties with filling out and filing their personal property claims.
Organizations President of 1st Hand fire victims assistance program
Education/Credentials Associates Degree in Business Administration
Specialty Courses in Insurance Adjusting
State Civil testing
Yearly Continuing education
Awards and Honors United Way Award for Community Service to Fire Victims
Question I have received a check for my personal property minus depreciation hinging upon replacement within 365 days for full replacement cost. Do I have to replace everything as stated on my loss sheet? It makes sense that I would do more important improvements/updates to my home with the $$ than going out and buying a shirt for a shirt so to speak. Can I do that? ie; rather than replace a piece of artwork, I want to update my countertop to match all the new painting and flooring that took place as part of the restoration.
Answer Hello Lynn,
The actual cash value money is yours to do with as you like. However, the insurance company only owes you the replacement cost (or depreciated amount) if you replace a similar item.
If you replace a shirt with a sweater, it is still clothing and you should be able to recover the replacement cost. On the flip side, you could not submit a receipt for an updated counter top and receive the recoverable depreciation for artwork.
Also, depending on what state you are in, you may have longer than 365 days. Most states are 2 years, my state is 3 years but every insurance contract I have seen basically states you have XXX days to submit your intent to replace in writing. This is a common issue with insurance companies. Check your policy carefully. This means you must submit a NOTE stating you INTEND to repalce and get it to them with in the days specified, it does NOT mean you actually have to replace the items in the stated time frame.
In order to find out for sure, contact your State Department of Insurance.
In addition, in order to recover the depreciation, you do not have to "use the money they gave you". For example, if you spend all the actual cash value money on improvements then in a few months you take your paycheck and go on a shopping spree, you can submit those receipts and recover the depreciation.
