3 Myths About Diminished Property Value After Suffering Damage

Will fire or smoke damage affect property value? It's a common question many homeowners face following a fire and there are many myths regarding this. Fortunately, the reality is that many of these myths simply aren't true.

When you notify your insurance carrier of a claim for damages, they will often send out a “preferred contractor,” assuring you that using someone from within their network is the fastest way to restore your home to its original state. It’s also an attempt by your insurer to control costs and possibly prevent you from hiring your own contractor. Most insurance companies have some type of agreement in place where preferred contractors work for a reduced rate in return for the volume of work the insurance company sends them.

Actual cash value (ACV) and replacement cost are two terms used in the insurance industry when describing the type of coverage offered for the reimbursement of personal property lost, stolen, damaged or destroyed. The two times these terms will come into play are:

When your home has suffered a catastrophic loss, your first instinct may be to immediately start cleanup and repairs. It’s hard to hold off when faced with a major mess like a fire-gutted kitchen or flooding caused by burst pipes. But resist the urge to clean up damage right away. There are steps you must – and must not - take when you have an insurance claim.

Technology has made cleaning up after a fire a lot simpler than it used to be. However, sometimes cleaning an item isn't the best move. The fire can damage the item so badly that using it again would, at the very least, make it ineffective if not dangerous. Here are five items that should be replaced, with help from your homeowner's insurance, after the items have been damaged by fire.

You may believe that, should you suffer a loss in your home related to either structural damage or personal property, it will be covered under your homeowner's insurance policy for reimbursement. You may not know, however, that there are several things homeowner's insurance does not cover and, these days, that list is getting longer and longer. This is because insurers are writing policies with additional limitations/exclusions that can only be found by reading the fine print, which policyholders often do not do.

It is expensive to relocate your family while you're rebuilding your damaged home. You’ll incur hotel expenses, meals out and more. Fortunately, your Homeowners policy covers those extra expenses under "Coverage D - Loss of Use - Additional Living Expenses.” Your property insurance adjuster should explain this coverage, but he’s not likely to go into detail about some of the benefits to which you are entitled.

Your home insurance policy is written using simplified language, but policies still seem downright tricky at times. Unless you’ve spent a sizeable chunk of your leisure time sifting through your policy's agreements, definitions, and exclusions, you might not realize that these five items are actually covered.

If you’ve suffered a property loss to your home, it has undoubtedly caused you substantial stress and grief. Dealing with your insurance company should not compound your worries but, unfortunately, all too often a claim is mishandled and as the insured, you can be left feeling your insurer is not living up to its policy’s promises or is in bad faith. In that case, it may be time to consider hiring a public adjuster to assist you with your claim. When you seek the help of a public adjuster, there are three main points to keep in mind:

With the spate of disasters now plaguing our country and, indeed, the world, it's important for homeowners to have sufficient, quality homeowner's insurance in force. It's also important to understand how it works, what benefits it provides and how to claim your fair share if and when a claim is made. Even with all these bases covered, seeking an insurance claim settlement for a property loss you've suffered is no simple exercise, especially when tackled on your own without the assistance of a public adjuster.