Insurance reimbursement

by Guest » Sat Jul 21, 2012 06:50 pm
Guest

I have replacement value insurance. My first floor condo was flooded by a broken water pipe in the condo on the second floor above me.

My insurance company said I would be reimbursed for my deductible once repairs were completed since the upstairs condo owner had homeowner insurance.

I was able to have the repair work done for less than the amount given to me. Will my insurance company keep my deductible? Will they want the difference between what they gave me and what it cost me in repairs? Will they give me the depreciation amount they held back even if I did not have to use it?

Total Comments: 3

Posted: Sun Jul 22, 2012 04:58 am Post Subject:

I think you misunderstood. They will give you your deductible when they collect all of the money from the party that caused the damage. It has nothing to do with the repairs.

If/When they collect the deductible, they will pass it on to you.

Posted: Sun Jul 22, 2012 02:51 pm Post Subject:

tcope is correct with a few caveats. There first must be a case of liability. Did the 2nd floor owner do anything wrong or were they aware of the probability of the pipe bursting. I am only aware of one state that has absolute liability for damages originating from the premises, Louisiana.

The second stipulation that must be met is who owns the pipe. Does it belong to the 2nd floor owner or the association? This wil be in the bylaws of the association.

Is there a care custody and control provision in the policy? That is the insurance policy of the association or 2nd floor owner (whichever owns the pipe) has a provision that they are not contractually liable for damages caused by anything in the care custody or control of their insured.

I think your adjuster spoke hastilly without all of the facts. Again, as tcope said, you will have to wait for it all to play out between the insurance companies involved, which might take months after the work is concluded.

Posted: Sun Jul 22, 2012 11:52 pm Post Subject:

The bylaws will also control your insurance carriers ability to recover your deductible. If there is an anti-subrogation provision in those bylaws, then it limits your carriers ability to recover the damages. Without the incentive to recover their indemnity, your carrier might not have any duty nor inclination to try to recover your deductible.

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