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 Posted: Thu Sep 20, 2007 2:41 am Post subject: REPLACEMENT OR A CHECK? |
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There was a breaking and entering at my place and they stole 10,000 worth of electronic equipment such as 50" t.v., surround sound jbl speakers and subwoofer drivers, amplifiers, dvd player, ps2, xbox360, nintendo wii, and a bunch of games. They want to A) replace all my stuff with whatever model is closest to that of my loss, or B) give me a cash check of the depreciated value of all of the items. Im really confused on this since they havent told me how much the check would be worth. Brand new stuff vs. money.... hard to decide. Any arguments?
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tenacity2986
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| Posted: Thu Sep 20, 2007 6:14 am Post subject: |
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Hi tenacity2986,
IMO getting the stolen object replaced by the insurance company is always wiser than taking the check. The insurance companies are skeptical in issuing check towards claims.
Well lemme present a situation before you. Suppose, the TV set was worth $1,500 when bought and after some months of use its value gets reduced to (due to depreciation) say $1,000. Now when the company is replacing it they have to replace it with a product of close price range i.e. $ 1,000. On the other hand, if you take a check they can negotiate it for any lower amount because the question of replacing the products no longer exists. And the objective of the insurance firm always remains to minimize the outflow of cash towards claim settlements. Got it! Juanita |
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Juanita
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| Posted: Thu Sep 20, 2007 7:12 am Post subject: |
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Good morning tenacity, I empathize with you, surely it is a hard choice. Just tell me, have you got an estimate of the loss? Normally, personal liability coverage on your homeowner insurance will cover the losses of your personal belongings to a certain limit. The coverage limit is defined in your policy. The insurer might have defined the policy limit on the items covered and also the payable amount for each claim a year. These limits are important for you to know. It will give you a fair idea about the amount you can receive for the losses. Therefore, re-read the policy document carefully and have a talk with the adjuster.
However, it certainly makes sense to me to get the claim settled in kind.
InsAmi
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InsAmi
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| Posted: Thu Sep 20, 2007 8:06 am Post subject: |
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Buddy it's completely your call. But if you ask my personal opinion I would have chosen the first option. Aside the reasons of getting more towards the claim, it will also save your time and hassle of purchasing the items of your own. Well in case of the first option, definitely, you are compromising with your choice but you can always disagree with the company on the quality of the products. GeorgeT
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George
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| Posted: Thu Sep 20, 2007 11:32 am Post subject: |
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Good morning tenacity2986,
Sorry you suffered such an awful loss, (emotionally too), the feeling of personel violation of an intruder in your home a terrible feeling.
Wow, lots of differing views here.
I really see this as a 'no brainer' why would you not automatically opted for | Quote: | | A) replace all my stuff with whatever model is closest to that of my loss |
. After all isn't that whole point of the claim? To have your stolen property replaced/recoverd? And if I understand you correctly they will replace it with new (without depreciation) products. Also as to option B, talk to your adjuster, it may be they will settle the claim for the depreciated value, but if you then replace it and provide the receipt within a specific time frame, you may be reimbursed that depreciated amount. For Like Kind and Quality, not if you had mid rage product then replaced it with top of the line.
I'd like to address a couple of the posts.
First, | Quote: | | personal liability coverage on your homeowner insurance will cover the losses of your personal belongings to a certain limit. |
...Incorrect, your personal property coverage is what pays for theft of well, personal property. What you are calling personal liab. is a just that, a liability coverage. (ie) I trip and fall on your uneven carpet and break my nose, if you are found negligent, the liability coverage is what pays to take care of my medical bills (if in excess of med pay limit) and my 'pain and suffering', loss of wage, etc.
Jaunita, what does this mean?
| Quote: | | The insurance companies are skeptical in issuing check towards claims |
George--I concur.....
lori |
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Lori
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| Posted: Fri Sep 21, 2007 5:41 am Post subject: Sorry for the confusion! |
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| Quote: | | And the objective of the insurance firm always remains to minimize the outflow of cash towards claim settlements. |
This line would certainly clarify what I actually meant. I didn't at all mean to say that the insurers hate to issue checks even when it is necessary to settle for the moneys worth, I simply meant that their adjusters would be happy to let issue checks for the smaller amounts towards any settlement. May be I chose the wrong words, sorry for that folks!
Cheers, Juanita |
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Juanita
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| Posted: Fri Sep 21, 2007 9:28 am Post subject: |
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| Thanks Juanita, for clarificiation. I just couldn't understand what you meant by ''skeptical". |
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Lori
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| Posted: Wed Sep 26, 2007 6:57 am Post subject: |
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I spoke with the insurance company. The total loss declared was about $11,000. They will give me a check for $4,800 or replace everything with new components. If they replace everything, I will get 7,800 worth of returns. Should I get some replaced and some money or all replaced and sell some new stuff on ebay to try and exceed the $4,800 cash check? Confused 21 year old needs help!!!
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tenacity
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| Posted: Wed Sep 26, 2007 9:52 am Post subject: |
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Welcome back tenacity!! 
| Quote: | | They will give me a check for $4,800 or replace everything with new components |
. replace everything with new components This is the option I would take, let them replace everything. This sounds like the option that will give you the greatest return. If there are some things you do not want or no longer need, either return them to the store (if that is possible) for cash or credit, or as you said, | Quote: | | sell some new stuff on ebay |
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| Quote: | | Confused 21 year old needs help!!! |
That's what we are here for! This is what I would counsel one of my kids to do.
What do you think? |
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Lori
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| Posted: Fri Apr 23, 2010 4:58 pm Post subject: Theft claim |
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My insurance company is pushing to send checks, they tell me if I cash the checks I can still turn in for added money amounts. Right now, the claim is under investigation, but they still want to send checks out for the loss, but not anywhere close to the loss incurred. Is that true?
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lanigirl
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| Posted: Fri Apr 23, 2010 8:35 pm Post subject: |
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Insurance companies are under mandates of state law to make payments for claims as soon as possible after their liability to do is clear. Be thankful that yours is trying to get yours to you as quickly as they are. It appears that they are acting entirely on the up-and-up. Claims are almost always subject to being reopened if new information comes to light.
If you are at all concerned that accepting one or more checks would constitute recognition of payment for the claim in full, just ask the claims representative to write you a letter explaining that the payments to date do not represent payment in full, that additional claims may be payable when the claim has been fully investigated, or if additional claims are submitted for the same loss.
The rule of thumb nevertheless is ALWAYS GET IT IN WRITING! Words (and memories of them) have a magical way of evaporating just before you needed to rely on them. While the claims rep may not have full authority to write such a letter, the letter itself will go a long way in pressing your claim with the insurer after the fact.
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MaxHerr
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