is my policy 100% replacement cost/it is a special form fire policy with inflation guard

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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...

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UPDATED: May 19, 2012

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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.

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