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insurance payout - does it involve depreciation /indemnity
Back from the loss adjuster. apparently the depreciation works this way.
a looking at the age of the property by the time frame a property is supposed to last gives the percentage of depreciation or indemnity value
this percentage times the
b this depreciation percentage is applied to the rebuild cost and if the resultant amount is less than the TOTAL sum insured that would be the
amount paid out.
anyone come across this gobbldegook????
So they do depreciate the property.
Yeah gobbledekook. They should give an example of how to calculate the depreciation but I guess they don't
Can some kindly throw some light as I am confused as to why, if we opted for a TOTAL SUM and paid the premium all along, shouldn't we be entitled for the TOTAL amount.
thanks an regards
Dax
I think you should be choosing the rebuild option.
Trying to grab the money could be seen as benefiting from the accident so the insurance companies have a clawback process to reduce the payout.
Why would you want a payout?
I think you should be choosing the rebuild option.
Trying to grab the money could be seen as benefiting from the accident so the insurance companies have a clawback process to reduce the payout.
Why would you want a payout?
A payout would be quicker. Then you could repay the bank. If you go for rebuild you have no rent coming in, and interest still to pay.
As Eugene defined it. A payout would be quicker. Then you could repay the bank. If you go for rebuild you have no rent coming in, and interest still to pay.
the 20K loss of rent will stop if the cash payment is settled out which is fine with us.
we really don't want to go through the hassle of rebuild with the insurance builders as they say it would be 9-10months but that is verbal it could take longer and then we would be stuck with the interest to pay on the whole mortgage.
moreover this was our dream home which we planned to move into once we retire but living in a rebuild does not appeal to us at all.
the loss adjuster said he would give the payout option and let us know the exact amount. Lets see, if we stand to lose on the payout ??? no idea what to do at this point in time.
we really don't want to go through the hassle of rebuild with the insurance builders as they say it would be 9-10months but that is verbal it could take longer and then we would be stuck with the interest to pay on the whole mortgage.
moreover this was our dream home which we planned to move into once we retire but living in a rebuild does not appeal to us at all.
Do you have an idea as to whether you were under or over insured in relation to sum insured and the expected rebuild costs ?
Can you rebuild to your specs, with the insurer covering up to sum insured and you covering the shortfall ?
we checked around and the quote by signature homes is slightly above the sum insured. Project managing the build oneself, with the trade would be just around the sum insured.
we can rebuild to our specs though not a major deviation
If an older house with nice wood, decorative features, and
high ceilings etc, these of course would not be replicated.
How so? I know you can't get 'better' with insurance,
but a re-build that was not like-for-like would border
on being fraudulent unless the policy said something
to that effect.
How so? I know you can't get 'better' with insurance,
but a re-build that was not like-for-like would border
on being fraudulent unless the policy said something
to that effect.
Because houses aren't built with these features any more.
Like-for-like must refer to quality, I guess.
And size of course. You can rebuild whatever floor plan you like, but the same size.
New houses have features such as wall insulation that the old houses didn't have.
The problem I see is the insurance company can argue whatever they like, which is why I am getting QS assessments done.
Some things are matters of choice; others will be
driven by the building code. E.g. double glazing.
If there was a point, how would a particle board floor
be a replacement for real timber T & G? The situation
would be worse if it was a special hardwood, too.
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