Total Loss due to a fire

[Diane]

Jurisdiction

Georgia

I would like to know if under the Additional Living Expense the money paid for a security deposit on a property that the Insurance Company paid the rent on and paid the deposit should be ever considered a part of the policy's Personal Property Contents Coverage or be under the Additional Living Expense portion of the policy?

 

[army judge]

I would like to know if under the Additional Living Expense the money paid for a security deposit on a property that the Insurance Company paid the rent on and paid the deposit should be ever considered a part of the policy's Personal Property Contents Coverage or be under the Additional Living Expense portion of the policy?

When you posed your question to your insurer, what were you told?

What, you haven't asked?

I suggest you do so, ASAP.

Or, read your policy.

 

[Diane]

I never posed the question to the company. The insurance company's adjuster had a housing company that they use contact me after he gave me their name. Once we found the rental property that company handled the issuing of the checks for the security deposit, and monthly rental amounts for the period of time the insurance company had approved. It has been over a year since the rental has ended and the insurance company still has not paid out on my Personal Property/Contents coverage under the policy. They have advised that they are getting ready to issue the check but are showing the security deposit money was coded under the personal contents section and are going to deduct that from the total amount of the Personal Property coverage amount. This was not ever advised to us. My understanding of Personal Property is
all tangible goods commonly found inside our residence and owned by us or family members who live with us. Examples of personal property include your clothes, furniture, and appliances. So money for security deposit doesn't fit in that category. What do you think?

 

[army judge]

So money for security deposit doesn't fit in that category. What do you think?

What I think, or even what I know doesn't matter.

What matters is what the insurer tells you.

If what you're told (or shown) isn't what you expect, your option is probably mediation or arbitration.

Read your policy to fully understand your options.

 

[Diane]

What I think, or even what I know doesn't matter.

What matters is what the insurer tells you.

If what you're told (or shown) isn't what you expect, your option is probably mediation or arbitration.

Read your policy to fully understand your options.

 

[adjusterjack]

I spent 35 years in the insurance industry, the last 9 as a property claim rep before I retired.

They have advised that they are getting ready to issue the check but are showing the security deposit money was coded under the personal contents section and are going to deduct that from the total amount of the Personal Property coverage amount. This was not ever advised to us.

Didn't have to be advised to you. The deposit for the temporary living quarters is not part of your property loss nor is it part of the cost of renting temporary quarters because it's a refundable deposit just as if you went out and rented yourself an apartment.

So, yes, it should be deducted from the property settlement if it was originally included in error.

 

[Diane]

The policy has Coverage D- Additional Living Expense and Loss of Rents with it's own dollar limit. In the policy declarations page for this coverage it states that the policy will pay the reasonable increase in your living expenses necessary to maintain your normal standard of living while you live elsewhere. It also states that it will be for the shortest time required. It does not make any statements about any portion of the cost coming from the Personal Property/Contents portion of the policy.

 

[adjusterjack]

It does not make any statements about any portion of the cost coming from the Personal Property/Contents portion of the policy.

And where does the policy say that a security deposit is included in the Personal Property Coverage or in the Additional Living Expense Coverage?

I'll save you the trouble of looking. It doesn't.

A security deposit is neither Personal Property nor part of the Additional Living Expense.

How much was the deposit?

Did you get it back after you moved out of the rental?

If not, why not?

 

[Diane]

So you think that money that was paid by the housing service to a landlord under the Additional Living Expense coverage and not to me should be deducted from the amount of my Personal Property payment. How can that be a part of my Personal property that was not in my home that was destroyed nor owned by me? This is information that came from the National Storm Damage Center.
"What Types Of Expenses Does Coverage D Cover?

Loss of use coverage covers two distinct types of expenses. The first type of coverage is called Fair Rental Value. If you were renting a portion of your home and that portion of your home is damaged and unfit for living, your Coverage D will pay for the lost rent during the time your dwelling is being repaired or rebuilt. The second type of coverage is for additional living expenses which typically include the cost of a hotel or rental property, food, and any other necessary daily living expenses consistent with your normal standard of living. In some policies Coverage D may assist with mortgage payments on your damaged dwelling while its unlivable."

 

[adjusterjack]

You're avoiding my questions:

How much was the deposit?

Did you get it back after you moved out of the rental?

If not, why not?

 

[Diane]

You're avoiding my questions:

The deposit was 3700 and no I have not seen the deposit money as far as I know it went back to the housing company that made the payments.

 

[adjusterjack]

The deposit was 3700 and no I have not seen the deposit money as far as I know it went back to the housing company that made the payments.

You didn't pay the $3700 deposit so you aren't out the $3700 so it's not part of your claim and you aren't going to get it no matter how you spin it.

 

[Diane]

The problem that I have is the insurance company is trying to deduct it from my Personal Property payment that they are going to make

 

[adjusterjack]

If the insurance company added the $3700 to your property loss inventory by mistake then it's reasonable for the insurance company to deduct it back out.

Presumably you have an itemization of your personal property loss showing one item of $3700 identified as the security deposit and a revised itemization that no longer shows it.

Yes?

If not, then ask the adjuster for the personal property loss itemization that determined the amount payable before the $3700 became an issue.

 

[Diane]

I have done this and they have been requested to provide proof that this was something that I received which they have not done.

However, I do not see how this could possibly have been coded as Personal Property "as the cost was an expense that was incurred as a reasonable increase in my living expense necessary to maintain our normal standard of living while we lived elsewhere". This is the definition under the Coverage -E of the policy additional living expense This is not personal property owned or used by any insured.

As I said it was my understanding that this money was returned to the housing company not me.
Also I have submitted to them a number of food bills, hotel bills and gas bills that occurred prior to the rental that they had advised they would cover does that come out of my Personal Property coverage too or from the Additional Living Expense coverage?

 

[adjusterjack]

I have done this and they have been requested to provide proof that this was something that I received which they have not done.

There is no "proof" that you received it ($3700) because you didn't receive it. It was paid to the housing company. It has nothing to do with your claim on either of the coverages.

However, I do not see how this could possibly have been coded as Personal Property "as the cost was an expense that was incurred as a reasonable increase in my living expense necessary to maintain our normal standard of living while we lived elsewhere". This is the definition under the Coverage -E of the policy additional living expense This is not personal property owned or used by any insured.

Believe me, it does my heart good to see that you are actually reading your policy but your policy provisions have nothing to do with the $3700.

If it was added to your personal property loss calculations BY MISTAKE and then backed out, you haven't lost anything because you weren't entitled to it in the first place.

If you are thinking that the company is taking $3700 away from you, that is not the case because it was never part of your claim in the first place.

For example if your bona fide personal property loss was $50,000 (your actual figures may differ) and somewhere in the adjuster's claim file it says $53,700 BY MISTAKE, and the $3700 is backed out to correct the ERROR, your bona fide claim is still $50,000.

I have submitted to them a number of food bills, hotel bills and gas bills that occurred prior to the rental that they had advised they would cover does that come out of my Personal Property coverage too or from the Additional Living Expense coverage?

Those bills are covered under the Additional Living Expenses part. But notice the word "additional." The hotel bills would be in addition to your normal living expenses but the gas and food receipts would have to be adjusted to determine the additional amounts above your normal living expenses.

For example, if you spent $500 per week on food after the fire because you couldn't do normal grocery shopping and cooking you would have to subtract your normal weekly grocery bill and you'd be paid the difference. But if you were put into an apartment for a few months and could shop and cook normally you might not be entitled to any reimbursement for groceries. Same goes for gasoline purchases.

 

[Diane]

I believe you are missing what I am saying. I suffered a total loss of everything the fire occurred Jan. of 2014 they have finally commented to pay the full policy limit but are trying to deduct for this amount. The food and gas submitted to them was only for the days that we were actually looking for a place to stay which was items that we would not have spent as well as the hotel stays and few days when we had to eat out. We did stay in a friends home and with family until we found the rental and we are not asking for payment for them. We just want the amounts to be paid like they should and feel we have waited way pass the length of time that we should. They also agreed to debris removal and Ok'd the amount and told us to have it done which we did provided them pictures and the bill along with our check# that paid the company and they still have not reimbursed us for that either.

 

[army judge]

I believe you are missing what I am saying. I suffered a total loss of everything the fire occurred Jan. of 2014 they have finally commented to pay the full policy limit but are trying to deduct for this amount. The food and gas submitted to them was only for the days that we were actually looking for a place to stay which was items that we would not have spent as well as the hotel stays and few days when we had to eat out. We did stay in a friends home and with family until we found the rental and we are not asking for payment for them. We just want the amounts to be paid like they should and feel we have waited way pass the length of time that we should. They also agreed to debris removal and Ok'd the amount and told us to have it done which we did provided them pictures and the bill along with our check# that paid the company and they still have not reimbursed us for that either.

Nothing anyone says matters.

You win nothing here, by arguing any point.

I'll make it easy for you.

You're the winner.

Whatever you say, you're correct.

Now, how will that help you with your insurance claim?

I'll help you again.

It won't, it can't.

If you dislike the way your claim was decided, or the payout you received, read your policy.

Somewhere among all those words you'll be told how disagreements are to be handled.

The insurance company makes the final decision.

If that decision is unsatisfactory, you can complain to yoru state's insurance commissioner (here is THAT link: Consumer Complaint Process )

Your other option is to follow the process laid out in your policy for filing grievances or complaints.

The final option, available to anyone, talk to several local licensed attorneys.

 

[Diane]

First off I'm not arguing a point I'm just trying to understand since if you read the policy the amount that they are trying to deduct was not paid to me and based on the policy it does not fit in the definition of Personal Property.

In reference to your comment about contacting the Insurance Commissioner's office well that is a whole other thing. I had a friend contact them and provide all the paperwork on a claim and the Commissioner's office agree that they were entitled to the money and the amount but told the friend they could not make the insurance company issue the payment. So what good is that?

 

[army judge]

So what good is that?

Therein lies my point.

Again, if you wish to know the insurance company's position, ask the insurance company.

All insurance companies have a complaint process, and/or an ombudsman.

No website can assist you.

You said it yourself, the insurance commissioner is just a sham.

That pretty well sums up what your tax dollars do for you, doesn't it?

I learned many years ago, no one cares about me or mine, except me and mine!