Who Decides Whether You Should Rebuild Or Repair Your Home After a House Fire?
There are several things to consider when deciding whether a fire-damaged house should be rebuilt or repaired. If your house has been damaged in a fire, your insurer is likely to push you to settle for the lowest cost option; however, the bare minimum may not cover all your costs, or the amount may be less than what your policy promises.
Local laws play an important role in determining whether a fire-damaged house will be rebuilt or repaired. One of the most important laws every homeowner whose property has been damaged in a fire should know about is Valued Policy.
California is one of the 20 states that have valued policy laws. A valued policy law is a legal statute. It requires insurance companies to pay the full value of a policy in the event of a total loss; which means that in the event of a total loss, the actual cash value or ACV of the insured property won’t be considered at the time of the loss.
These laws vary from state to state. While laws in some states address residential fire losses only, laws in other states (including California) require insurers to compensate policyholders for all losses covered by the homeowner’s insurance policy.
The valued policy law and other laws that govern the insurance industry override any policy language that conflicts with them. Some municipalities may refuse to uphold the law.
To avoid confusion and problems, document your losses and ensure compliance with all state and municipal requirements.
Have a professional experienced in fire damage prepare a scope of loss. You can miss certain details about your loss, the professional won’t. They will create a detailed report that contains important information, such as the nature and extent of damage and how much it will cost to restore the property to pre-loss condition.
Some carriers will try every rule in the book to pay less than what they’re supposed to. If you believe your carrier is trying to minimize the payout, hire a licensed public adjuster to negotiate with the insurance company on your behalf.
The party that presents the most compelling proof, demonstrates the greatest intent, and presents the strongest arguments, decides whether the property should be rebuilt or repaired.
Review your policy thoroughly to understand what it promises. In cases involving a total loss, arriving at a full settlement should not be a problem; however, when the scope is less obvious, you will need professional help to prove your claims.
Holly Construction, Inc. specialize in fire rebuilds in Santa Rosa. We use tried-and-tested methods designed to fast-track the rebuilding process. We will go the extra mile, if required, to deliver your project on time. To make an appointment, call 707-541-0700.
- Posted On August 17, 2021