conditions on earthquake repairs

[ericmlarsen]

I have been offered settlement on an earthquake claim based on the repair bid of a contractor selected by the insurance company. The repair bid is based on repairing things to exactly what was there before the earthquake (chimney, fireplace, driveway, etc.).

I live in Washington State and I have a couple of questions. First, what are my rights with regard to choosing repair options that may differ from repairing things to exactly the way they were?

Second, Am I entitled to repair some things to a standard that costs less than an identicle replacement repair (gas fireplace with no chimney instead of full-blown replacement masonry fireplace) and apply those savings to repairing something else to a higher standard (exposed aggregate driveway instead of a plain poured driveway, etc.)?

Third, can I choose to apply some of the insurance settlement to my deductable by having less expensive types of repairs done or by doing some of the demolition work myself?

I just need to know what my rights are in this arena. In my opinion, I have suffered a loss of value and how that value is restored to my house should be up to me and not my insurance company. Additionally, repairing things to pre-earthquake condition would mean repairing them to 1973 standards which doesn't work for me in terms of function, aesthetics, or safety.

Thanks up-front for the advice!

 

[ALawyer]

USUALLY the insurance company has to deal not only with you but also with the BANK that holds the mortgage on the property and it wants to see the place repaired as it was before, so its mortgage is secure.

If there is no mortage, and they know the damage, and don't get a discount from the contractor, they don't care -- it there is a real loss they'll pay for it and not care what you do. BUT there are some people who -- let's be polite -- "create losses" or exaggerate claims, with the hope the insurance company will "redcorate and remodel" the place. Offering to return it to as it was status is thus sometimes a way to see if the insured is honest with them or not. Now clearly you did not cause the earthquake, so I don't see what the fuss is all about.

You may want to ask the state insurance department what your rights are -- Washington State has a good one.

 

[netsure]

Rights and Information

It is important to recognize your authority, basic claim rights, and rules governing insurance company behavior. Free information is at http://www.sure-net.com/deserve.html
Also, our forum contains some posts relating to succesful recovery of previously underpaid earthquake claims: http://www.sure-net.com/board/index.html