Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: May 19, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Dowagiac, MI

Asked on 05/19/2012

is my policy 100% replacement cost/it is a special form fire policy with inflation guard Auto-Owners has pointed to the policy,where it says they will pay the lessor of the amounts to replace or policy limits,and I saw from ISO all policies say that,even whenthere is a guaranteed replacement cost? How can I trust Auto-Owners when I don't knowwhat any of the "forms" stand for,and they have taken since 30 January 2011(fire loss)to even begain to talk? Can they be made to pay the whole amount because of their delay in the claim or do I have to wait to spend money for repairs,and then get's reimburse ? I don't trust them to pay? Help if you can. Seems like getting attorney's invol

Answer given on June 03, 2012

Almost all Homeowner insurance policies say they will pay up to the limits of the policy or the cost to reppair the home as a part of the standard homeowner policy. If there is an extended replacement cost endorsement, or a guaranteed replacement cost endorsement, that is added to the policy.Most policies do not include a “guaranteed” replacement cost endorsement anymore. They usually have a limit of 10% to 100% of the policy limit. You need to read the endorsement on your policy to see what the limit is. Then present the number of the form that is attached to the policy to the adjuster and have them acknowledge the endorsement is a part of the policy.Most companies will pay a portion of the policy while repairs go on. They can’t really expect you to pay out of pocket for the repairs. You should also have your contractor talk to the adjuster about payment.It seems the delay to pay any repairs is excessive. YOu may want to talk to a supervisor or call the Dept of Insurance in your state for assistance in speedint up the process.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.