need to know if ins. company did this right?

[sisymay]

What is the name of your state? GA

Main legal question-- Does this seem to be legal??

I have Farm Bureau Ins. in GA. I filed a claim because lightning hit our computer and heating and air unit. They had me to fill out a 'personal property inventory' form.
I had to have estimates of repair and replacement costs for both items.

Two days after I mailed this back to ins. co, claims adjuster called and asked if I got the items repaired. I said no, that ins. co wanted me to just have estimates done. He asked when was I getting that in to them? I said I mailed it 2 days ago. He said he'll find it.

The very next morning I got a check in the mail. Very suspicious, I don't see how I got this the very next morning when the afternoon before, he didn't even know I had sent in the inventory form.

The ins. co paid for the 'replacement' estimate of the computer in full, but did not pay even half of the 'repair' cost of the heat and air unit. I guess they did not consider the 'replacement' estimate cost of the heat and air unit.

Along with the check was a copy of my inventory form that I filled out. Someone wrote on it 'actual cash value' and wrote the amounts they paid for each item.

I called to ask questions to my agent. I was told 'only' the adjuster could talk to me. I even called the home office, they told me the same thing.

I wrote a letter to claims adjuster, the person everyone told me I had to talk to. I asked the following questions:
1.According to the companys policy on handling claims filed by insured, was I suppose to fill out and/or recieve more forms than just the 'inventory' form?
2. Why wasn't the 'depreciation' section of the inventory form filled out?
3. Is it your companys policy to pay for items at 'cash value only'? If so, why was my computer paid for at full replacement price, (not cash value)
but my heat and air unit was paid for only half of the 'repair' estimate cost? How is half of the repair cost considered 'actual cash value' ?
4.If it is your companys policy to pay for items at 'cash value' only, why does the inventory form ask for 'repair' and 'replacement' costs, if you do not even pay this?
5. How was the 'actual cash value' of my heat and air unit determined? The written estimate I included for the unit stated that it can not be repaired because some of the parts are not made anymore. How can you determine actual cash value on something that's not being made anymore?
6.Should I have recieved more documentation than the check and a copy of the personal inventory form I already filled out?

Here was his written reply-
Your homeowner policy insures personal property, household appliances and outdoor equipment at cash value only. THis is stated in the 'loss settlement' section.

Now, why didn't he answer the rest of my questions? If he was honest he would have answered my questions.

I looked over my policy and I can not understand it. There are some questionable things I have read that does not coincide with what he has told me.
Just to let you know, I even had trouble getting a copy of my policy from the ins co. (I lost mine) But I finally got it.

If they are honest in what they are doing, that is fine. I will not question it. But I want to make SURE they are honest in this. None of these incidents seem to be right to me.

I am not cashing the check until I understand it all.
Thank you for your time.What is the name of your state?

 

[seniorjudge]

You got a check.

Was it enough?

If so, then cash it.

If not, take your insurance carrier to small claims court.

 

[sisymay]

How can I say what is 'enough' if they are the ones to decide that? I am wanting to know if they followed legal procedures.

The payment I wanted is (according to estimates I submitted)
$4,700 and they paid $725.00

 

[efflandt]

Cash value does not mean replacement value. They very likely have resources to determine cash value from model numbers. An old obsolete HVAC unit that has lived its useful life and may be due for replacement may have little cash value. As time goes on PC's continue to give more features at lower cost making it easier to replace a relatively new system at at near its cash value (especially if your or comparable model is available at close out prices).

 

[moburkes]

You also didn't state what your deductible is. What is the actual cash value of the computer? What about the heating unit? When you get those numbers, then subtract your deductible, your answer should be (close to) the amount of the check.

How did you come up with $4700? How old is the heating unit? How old is the computer?

 

[sisymay]

The way I come up with 4700.00 is that the 'replacement' est for heat/air is $4000.00 and the 'repair' est for computer is $700.00

My computer is 5 yrs old. My heat/air is 14 yrs old.
My deductible is $250.00

repair est. for computer is $700.00
replacement est. for computer is $300.00

Repair est. for heat/air $1453.00
replacement est. for heat/air $4000.00

They are paying 'actual cash value' for my computer of $700.00 WHAT??
They are paying 'actual cash value' for my heat/air of $727.00 WHAT??

total is 1427.00 less the deductible equals $ 1177.00
which is what they paid.

Why are they saying my computer is almost the same 'actual cash value' as my heat/air?
Why did they pay $700 for computer when replacement cost was cheaper?

I did not give them model or serial number for my computer.

I have been looking over my policy and don't understand it, so I don't know if they are doing this right or not.

 

[moburkes]

Apparently you did not purchase a replacement cost insurance policy. The actual cash value is calculated by subtracting what it would cost new, and subtracting out depreciation, and extra wear and tear.

If I understand your post correctly:
COMPUTER:

My computer is 5 yrs old.
repair est. for computer is $700.00
replacement est. for computer is $300.00
They are paying 'actual cash value' for my computer of $700.00 WHAT??
They are paying 'actual cash value' for my heat/air of $727.00 WHAT??
Why did they pay $700 for computer when replacement cost was cheaper?

Let's say that your computer cost $1000 new (you didn't provide this information). Its no longer worth that, especially when its 5 years old. That was VERY generous of them to give you $700 towards a new computer. VERY. Maybe they assumed that you spent $2000 on it.

HEATING/AIR:

My heat/air is 14 yrs old.
Repair est. for heat/air $1453.00
replacement est. for heat/air $4000.00
They are paying 'actual cash value' for my heat/air of $727.00 WHAT??

Your furnace cost $4000 brand new 14 years ago. Its not worth much at all today. They don't look at how much it costs to repair, only the ACV. They are saying that it is "worth" $727 today. A furnace generally lasts, what 15 to 20 years? They've depreciated it.

Their payouts appear to be reasonable.

 

[sisymay]

Thanks so much for everyone's help. If the ins. co is honest, then that is fine, I won't question it. I am not trying to get anything over on them. I just want this to be honest.
So, I'm just trying to find out if this IS honest since there are a lot of questions I have.

I am not sure if the air unit cost $4000.00 new years ago. The $4000.00 come from the estimate of how much it is to 'replace' it now.

On my property inventory form, there was a section they were suppose to fill out called 'depreciation' and they wrote nothing. Were they suppose to?

I know it is very good for them to pay $700 for the computer. Anyone could tell that's not the 'actual cash value' of it now, so that doesn't make sense?

Someone told me that sometimes ins companies pay way too much on less expensive items to throw you off and make you think they paid correctly on the most expensive items, so you won't question it. But in doing that makes me question it.

 

[moburkes]

Okay. What is a 14 year old heating unit worth today? THAT is what they are giving you money for. Not how much it costs new, or anything else. Is $727 fair for a 14 year old heater? I think so.