![]() ![]() Example 2 contains some common provisions, but the exact policy language often varies considerably among policies. Several aspects of homeowners insurance policies are typically implicated in catastrophic personal property loss claims: (1) the policy declaration’s monetary limits for the personal property (contents) coverage (2) the policy’s specified sub-limits and exclusions for certain kinds and classes of personal property and (3) the policy’s loss settlement and appraisal provisions. Example 1 lists some common loss-adjustment strategies employed by insurers and “badges of fraud” they may flag. 6 Because such inventories may consist of thousands of line items, the risk of accidental duplication or error is almost unavoidable, so the risk of an insurer raising a fraud defense cannot be eliminated. These uncertainties can lead an insurer to contend that some of the claimed inventory is fraudulent and seek to void some or all of the policy’s coverage. Coverage limitations or exclusions also may apply to items with sentimental or unique value, such as wedding albums, family heirlooms, and antiques.Ĭreating a personal property inventory from memory, random family photos, electronically stored purchase records and credit card receipts, remnants found in the rubble, and so on can help complete a personal property inventory post-loss, but compiling such inventories is time-consuming and heart-rending, may be imprecise and incomplete, and could cause inadvertent duplications. Moreover, most policies impose sub-limits that apply to particular kinds and classes of property, such as cash, silverware, valuable collections, and certain business property. ![]() Homeowners generally must prove what personal property was present when the home was destroyed, the property’s age and condition, the availability of “like kind and quality” replacement personal property, and the property’s depreciated value and actual replacement cost. Common Coverage and Proof ProblemsĮstablishing personal property loss following the loss of a home is no easy task. It also suggests steps to take to maximize coverage when buying homeowners insurance, including establishing the pre-loss existence, condition, and value of the property, and securing more expansive insurance protection. It discusses problems inherent in establishing a covered personal property loss and provides practical tips for addressing them. This article examines the typical insurance coverage applicable to the destruction of a homeowner’s personal property due to fire, flood, or some other catastrophic event. 5 But generally, to receive payment above that statutory minimum, homeowners must establish additional personal property loss per their policy’s terms. 4 With a little arm-twisting, the Colorado Division of Insurance persuaded many insurers to pay a much higher percentage to homeowners affected by the Marshall Fire. 3 In Colorado, when a home’s contents are completely destroyed by fire, homeowner insurers are required to pay 30% of the personal property limits without any proof of the nature, condition, or value of the lost property. Most home insurance policies include automatic coverage for personal property (contents) loss with payment limits equal to some percentage of the overall dwelling limits. Capable of exceeding 5,000 degrees, 2 home fires often destroy personal property or render it unrecognizable. 1 Among the many profoundly sad scenes following that conflagration was that of people picking through their homes’ ash and rubble to create an inventory of their burned personal property. ![]() On December 30, 2021, the Marshall Fire, fueled by steady 100 mile-per-hour straight-line winds, scorched Louisville, Superior, and unincorporated Boulder County, killed two people, and destroyed nearly 1,000 homes. This article discusses common problems homeowners face when filing claims to access their insurance coverage for personal property loss following the catastrophic loss of a home by fire, flood, or otherwise. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |