Homeowners insurance challenge

[lindar770]

What is the name of your state (only U.S. law)? Texas

Our insurance company says we have to put out the money for replacing our damage done to our floors and walls caused by a water heater. Most people, including us, do not have the money to pay out in advance. The insurance company has said they will reimburse us after we have paid for it. I thought this was why we carried insurance! Has anyone ever heard of an insurance company doing this? I'm questioning the legality of it

Thanks,
lindar770

 

[Zigner]

What is the name of your state (only U.S. law)? Texas

Our insurance company says we have to put out the money for replacing our damage done to our floors and walls caused by a water heater. Most people, including us, do not have the money to pay out in advance. The insurance company has said they will reimburse us after we have paid for it. I thought this was why we carried insurance! Has anyone ever heard of an insurance company doing this? I'm questioning the legality of it

Thanks,
lindar770

What does your policy say regarding their request?

 

[JustAPal00]

What does your policy say regarding their request?

How old are the floors and how old is the water heater? What condition were they in? If you're trying to get replacement cost they will require that they be replaced first. They should be willing to give you the depriciated value prior to replacement.

 

[Banned_Princess]

I bet that's what it is "replacement cost" .

 

[moburkes]

I bet that's what it is "replacement cost" .

Replacement cost is for contents. A water heater isn't generally considered contents.

 

[Banned_Princess]

Replacement cost is for contents. A water heater isn't generally considered contents.

your right, but you can also have cost replacement on the dwelling as well.

 

[moburkes]

your right, but you can also have cost replacement on the dwelling as well.

Most policies written today have replacement cost on the dwelling. But Justapall is right - you generally don't pay for all the repairs up front, then get reimbursed. You generally get the ACV value up front, make the repairs, then get reimbursed for the add cost that wasn't previously reimbursed.

But many companies pay out up front in the first place.