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Our home was destroyed in a tornado. The insurance company estimated the claim to be 207,000 and totaled our home. They issued us checks for the damage minus the 15,000.00 in depreciation. We bought a foreclosed home for 195,000. Now they tell us they dont owe us the depreciation amount. We were told all along we would be issued that money when we either replaced or rebuilt. We had planed on using that part of the settlement to make repairs to the home. Are we entitled to the depreciation funds?Thank you for your time
Optional Information: Country relating to Question: United States State (if USA): Alabama Already Tried: talked to claim representative handling our claim.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good evening. It depends upon your specific policy. This happens a lot and it's because homeowners are not careful about reviewing their policies. It likely that given the insurance company's position that your replacement coverage is only on the improvements, but not your personal property. If you have replacement coverage on both your improvements and personal property, the insurance company cannot deduct depreciation on either; but If your policy covers only the improvements for replacement coverage and your personal property (your home's contents) for its actual cash value, the insurance company is entitled to deduct depreciation from your personal property's overall value before arriving at a figure. I'm sorry!
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Thanks for allowing meto be of service to you. Please be aware that the information provided here isnot legal advice. Rather it is simply general information. All states have intricacies in their lawsand any information given is simply information only and specifically is notintended to be, nor does it constitute, legal advice. This communication doesnot establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Ok thank you. Would repairs made not be considered part of the replacement process. Again thank you.
Yes, repairs would be part of the improvements; not personal property. They would not be able to take the depreciation on any improvements.
Experience: Attorney/Developer