by Guest » Tue Oct 12, 2010 03:34 pm
Criteria of "Replacement"
My elderly mother's house in NY suffered fire damage a few weeks ago, and I'm working with the adjuster; the dwelling can not be occupied until reconstruction of the top two floors and she's living in an apartment for the time being. After considerable HO research, and with help from this forum, we are down to a couple of crucial decesions: rebuilt or sell the dwelling as is. I believe that I have a good understanding of cruicial HO terms concerning this subject and the advantages of either a "depreciable holdback" for rebuilding or a "walk-away figure" if she opts to sell it as is. My question is what would HO 03 Loss of Settlement consider "rebuild or replacement" ? Does that mean she HAS to purchase another dwelling for the same rebuild cost (or more) in order to recapture her depreciation; can she decide to rent an apartment as replacement; can she buy an RV as a replacement? Your thoughts as insurance professionals?
Jim
My elderly mother's house in NY suffered fire damage a few weeks ago, and I'm working with the adjuster; the dwelling can not be occupied until reconstruction of the top two floors and she's living in an apartment for the time being. After considerable HO research, and with help from this forum, we are down to a couple of crucial decesions: rebuilt or sell the dwelling as is. I believe that I have a good understanding of cruicial HO terms concerning this subject and the advantages of either a "depreciable holdback" for rebuilding or a "walk-away figure" if she opts to sell it as is. My question is what would HO 03 Loss of Settlement consider "rebuild or replacement" ? Does that mean she HAS to purchase another dwelling for the same rebuild cost (or more) in order to recapture her depreciation; can she decide to rent an apartment as replacement; can she buy an RV as a replacement? Your thoughts as insurance professionals?
Jim
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