My shed was damaged in a storm – do I have to use the insurance money to buy the SAME shed, or can I select a different option?
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UPDATED: Oct 13, 2010
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Insurance Question from Belle Valley, PA
Asked on 10/13/2010
My shed was damaged in a storm – do I have to use the insurance money to buy the SAME shed, or can I select a different option? What I'd like to do is build a deck with a watertight underside and use a big portion of that as a shed - it will be water-resistant and have walls and such, but will not be the same as the shed that was destroyed. Is this considered insurance fraud? I mean, I'm building a storage area for all of the things I kept in my shed, it's just of a different nature....can anyone provide advice on this BEFORE I make a bad decision?
Answer given on October 14, 2010
You can do whatever you want with the money. The money was for your loss, not for the cost of an exact replacement. The money you receive is based on what COULD be an exact replacement, but that doesn’t mean that’s what you have to use it for; that’s up to you.
Had a house in my hometown blow up due to a gas leak. It was an older historic home. Now, sitting on the same lot is a brand new house that looks nothing like the one it replaced.
Bottom line, the money you receive for your loss is yours to do with as you wish. You don’t even have to replace your deck with it.
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