Property insurance claims can leave many policyholders feeling vulnerable, and for good reason. Whether they have had their home destroyed in a natural disaster, or have had their vehicle totaled in an accident, the policyholder may find that the property insurer is rather aggressive in denying, undervaluing, or otherwise mishandling their claim for benefits — given how difficult their circumstances may be at such a time, the adverse decisions of their insurer can deepen the already-significant emotional challenge.
Let’s take a look at the benefits that you might be entitled to receive as a property insurance claimant.
Property Insurance Benefits May Cover a Range of Losses
Property insurance policies vary significantly from plan-to-plan, so there is really no “one size fits all” explanation that will be suitable for all claimants. If you paid for a high-end homeowner’s insurance plan, for example, then your plan may feature a provision that grants you loss of use benefits, whereas if you paid for a cheaper plan, then it may lack such coverage.
Loss of Use
Loss of use coverage will grant you benefits to cover losses associated with:
- Having to rent another property to use in the interim period (until repairs can be performed, or a replacement is found)
- Costs for relocation
- Increased costs of living
- Storage costs
For example, if you lose access to your house due to a natural disaster that destroys most of the home, then you may submit a claim and receive benefits for loss of use to cover your various costs — renting, relocating, storage, and more.
Replacement cost coverage will pay out benefits equivalent to the cost of either repairing the property to its original condition or replacing it entirely with property of similar quality (and similar in like and kind). Replacement cost coverage is more comprehensive than actual cash value coverage — it ensures that you will receive the maximum amount (not counting loss of use) for the suffered losses.
Actual Cash Value
If your property insurance coverage is based on “actual cash value,” then you will be paid benefits in accordance with the depreciated value of the property at-issue at the time of the loss itself. Put simply, you will receive the replacement costs minus the depreciation. Actual cash value coverage is rather limited compared to replacement cost coverage, as there is very likely to be significant depreciation in more severe property loss scenarios.
Request an Appointment With an Experienced Miami Property Insurance Lawyer
Here at Ver Ploeg & Lumpkin, P.A., our attorneys have decades of experience representing policyholders in disputes with their insurance carriers, including property insurance disputes where the insurer may refuse to pay out for the covered losses. We have a long history of successfully litigating claims against property insurers, with a number of significant case results obtained on behalf of our clients.
If you’d like to learn more about how to proceed with your property insurance claim, or if you have any other questions or concerns about your dispute, we encourage you to get in touch with an attorney at our firm. Call (305) 577-3996 today to request an appointment with an experienced Miami property insurance lawyer here at Ver Ploeg & Lumpkin, P.A. We look forward to helping you.Share