Wind Damage

Wind can cause severe damage to a property, particularly during storms or tornadoes. High winds can wreak havoc on roofing materials, windows, doors, and even entire structures. At Mehr Fairbanks Trial Lawyers, we strive to address our clients’ concerns and formulate strategic legal approaches to handle these cases.

Hail Damage

Hailstorms are often associated with sizeable property damages, ranging from roof shingles and flat roofs, damage to the breakage of windows, to other exterior damages like siding. Insurance claims related to hail can be quite complex, but with our team’s professional guidance, we would help navigate this process effectively.

Water Damage

Water damage is a widespread issue that arises from various sources such as leaks, freezing, pipe overflows, floods, or even extreme weather conditions. It can cause substantial property damage if not addressed immediately. At Mehr Fairbanks Trial Lawyers, we assist clients in understanding their rights and the steps necessary to claim the loss from their insurance company.

Fire Damage

Fire incidents can lead to colossal losses, affecting the structure and interiors of a property, plus potentially resulting in additional smoke and water damage. Claims involving fires require diligent investigation. We are committed to ensuring that our clients receive fair evaluations and compensation for their losses.

Is Your Claim Covered?

Insurance policies can appear daunting given their technical terminology, lengthy documents, and unfamiliar nuances. However, understanding these terms is essential for both homeowners and businesses. This understanding comes in handy particularly when making property damage claims.

Insurance coverages work on the premise that not all damages are alike. This principle forms the basis of differentiating between damages covered under homeowner insurance policies and those covered under commercial property insurance policies.

Homeowner insurance policies typically cover damages which can include covering losses due to wind, hail, water, and fire. However, the extent of the coverage, policy limits, and deductibles can significantly vary. For instance, certain types of water damage may be covered, yet damage from flooding might not be. Fire damage is usually covered, but if it is due to an intentional act, you are likely out of luck. Water damage in your home? It may not be covered if it was continuous leakage or seepage from a home appliance.

On the other hand, commercial policies have similar categories of damages but with different layers of complexity. These policies cater to a business’s multi-faceted needs, adding to the complexity. Depending on the policy, it may cover interruption of business operations, repair or replacement of special equipment or machinery, etc., aside from standard coverage of the building due to wind, hail, water, or fire.

With both types of policies, it cannot be stressed enough that the understanding of terms, conditions, and the fine print of insurance policies is crucial to ensure appropriate coverage.

If you have suffered a property loss or are facing difficulties with coverage disputes, please contact Mehr Fairbanks Trial Lawyers at (800) 249-3731. We are dedicated to helping our clients navigate through complexities, ensuring they are treated fairly by the insurance companies during their time of need.

If you have had property damage at your home and received an insurance claim payment from your insurance company, you may be wondering why this payment is significantly less than the cost to repair your property.

Insurers will often refer to the initial payment to you as “actual cash value” or a payment that has “depreciation” deducted. The term “actual cash value” simply means the cost to replace your roof minus the depreciation of your roof. This is often calculated by the insurance company using a computer estimating software called Xactimate.

Even if you have purchased a replacement cost insurance policy, most homeowners’ insurance policies contain payment provisions that allow the insurance company first to pay this lesser “actual cash value.” Then, after you complete the repairs, you can make an additional claim to recover the depreciation that is being held from you.

It is important to remember that after your repairs are done, you need to actively reach out to your insurance company to let them know the repairs are complete and that you are requesting to be paid the amount of recoverable depreciation. The full amount may only be available after this two-step process.

Think of it this way: let’s say you have damage to a roof that is 10 years old. If the damage requires the replacement of the entire roof, the insurance company will first make an “actual cash value” payment to you. This payment deducts depreciation so that the insurance company is paying you for the value of a 10-year-old roof. Once you complete the repairs, you can make an additional claim for the replacement cost, which is the cost of a new roof. The difference is the depreciation.

This issue was analyzed in Hicks v. State Farm Fire & Cas. Co., 965 F.3d 452 (6th Cir. 2020). The insurance policy in that case, like many others, contained language allowing the insurer to first pay “actual cash value,” and then after repairs were completed, the insured could seek to be paid the recoverable depreciation. The insurer:

produced an ACV calculation (RCV minus material and labor cost depreciation), subtracted the insured’s deductible, and then [the insurer] paid that Xactimate estimate to the insured.

Insureds did not have to spend this ACV payment or make repairs on their property; if they made no repairs or made repairs for less than the ACV payment, they did not have to return any of the ACV payment to [the insurer]. If an insured made repairs and incurred costs exceeding the ACV payment, however, the individual could seek further payment from [the insurer]. In this second stage, the insured could seek repayment of replacement cost benefits based on documentation showing the repairs made and the costs incurred.

Hicks, 65 F.3d at 455.

When you buy a replacement cost insurance policy, you are entitled to these additional benefits once your repairs are complete. Don’t forget to follow up with your insurance company to recover these funds. There may be a limited amount of time for you to make a claim for replacement cost benefits, so it’s always a good idea to complete the repairs in a timely fashion and then report the completed repairs to your insurer.

If you have had a property damage claim to your home and have questions, contact us at Mehr Fairbanks Trial Lawyers.

*The information contained within this post should not be considered legal advice or legal representation.