Over the years, you have been able to make home insurance payments to your insurance company but never for once have you ever filed for a claim. Suddenly, you have a fire outbreak and while trying to put out the fire, you ended up creating a water damage. While considering ways by which the water damage can be fixed, mold started growing but you have nothing to worry about because it is covered by your insurance right? This article talks about using home insurance money for something else.
You are still trying to deal with the water damage and the mold that is growing then you figure out certain limitations, exceptions and few exclusions which are there in your policy without you really knowing about it. The aim behind purchasing the insurance was just so you could have something or somewhere to run to in time of emergency but now, it is dawning on you that that aim might not be fulfilled because the aim of the insurance company seems a little bit different from yours.
This is what keeps you wishing you were taught this exactly back in school but then you weren’t taught and when you sit and analyze these clauses in your policy from the angle of insurance then you realize it makes perfect sense but where exactly does that leave you? Purchasing insurance offers you a wide range of coverage or services that you can choose from and we have two basic coverage types which are the actual cash value and the replacement cost value.
If what you have is a replacement cost value then what you would get is the total or complete cost of taking your home back to the way it is before any incident or disaster occurred minus your deductible. In the case of an actual cash policy, what you will be provided with is coverage that measures up to the amount of the property that has already been depreciated minus your deductible. Whatever the case may be, it is the obligation of the insurance company to make sure that your home is taken back to the way it was before.
Using Home Insurance Money For Something Else
If the settlement offer that your insurer is offering doesn’t sit well with you then you can always battle your insurance company but you should have it in mind that the insurance adjuster must have been in the same kind of fight so many times and you are probably just getting used to it. This isn’t a fair fight to be honest and this is why we always advice people in this seat to go on and hire the services of a public adjuster.
This helps in leveling the playing the field as the public adjuster is working to represent you and your interests. They are good at dealing with large insurance companies and also getting the maximum settlement and this is why it is good to hire them because you are putting yourself in the strongest position while pushing for a good settlement offer. If you decide to represent yourself in a case like this then you are putting the insurance company in a position stronger than yours and that gives them more upper hand against you.
Oftentimes, homeowners are left puzzled as to whether they should if it is ethical or legal to keep money gotten from a settlement for repairing damages in their homes. To be sincere, the answer is YES. Homeowners spend years in paying for insurance bills only to realize that when the disaster actually strikes, the insurance company isn’t willing to pay in full the cost that would cover up for their repairs. The insurance company is meant to make you whole after an incident.
However, making you whole after an incident clearly rest on what coverage you have in your policy and truthfully, once an insurance company issues you money, they are not really interested in what you do with it provided what you do with it doesn’t leave behind a situation that is likely to stir up a future claim. Maybe your cabinets was destroyed in a fire outbreak and after getting the money, you can decide to paint the wall yourself and keep the rest of the money in the bank.
In this case, you would not be able to seek out or find extra damages which might lead to you filing a follow up claim.