Backed into Neighbors Garage Door my Insurance Will Pay Only $700 of New $2400 Door

tisovich

New Member
1
I have been communicating with my insurance company American Family Insurance.
My claim is that I backed into my neighbors garage door and it has to be replaced; it is an expensive door the new one will cost $2400.00 but my insurance will only cover $700 of it saying they are depreciating the garage door.
I have full coverage on by car for the very reason if an accident happened the insurance company would pay any claims over my $250.00 deductable.
They say that's the way insurance works they do not make anyone better off then when before the accident happened. Meaning the garage door is not new and with their depreciation of it they say it has a value of $700.00.
That does not may any sense to me.
My understanding is if I hit some one they get their property repaired an I only pay my deductable.
I think the claim should be paid in full for the new door minus my deductable of $250.00.
What am I missing?
 
I have been communicating with my insurance company American Family Insurance.
My claim is that I backed into my neighbors garage door and it has to be replaced; it is an expensive door the new one will cost $2400.00 but my insurance will only cover $700 of it saying they are depreciating the garage door.
I have full coverage on by car for the very reason if an accident happened the insurance company would pay any claims over my $250.00 deductable.
They say that's the way insurance works they do not make anyone better off then when before the accident happened. Meaning the garage door is not new and with their depreciation of it they say it has a value of $700.00.
That does not may any sense to me.
My understanding is if I hit some one they get their property repaired an I only pay my deductable.
I think the claim should be paid in full for the new door minus my deductable of $250.00.
What am I missing?

Well actually the "full coverage" portion has nothing to do with the claim. The liability property damage pays for the damages to the other party. Therefore there shouldn't be a deductible unless there were also damages to your vehicle. It sounds like your insurance company thinks the door can be repaired rather than replaced judging by the amount they are offering.
 
Your neighbors Insurance company will subrogate against your insurance company for the difference. If it goes to arbitration your company would lose. Of your company is making an offer to your neighbor he has the option of using his own insurance instead of going through your company.
I have been communicating with my insurance company American Family Insurance.
My claim is that I backed into my neighbors garage door and it has to be replaced; it is an expensive door the new one will cost $2400.00 but my insurance will only cover $700 of it saying they are depreciating the garage door.

Full coverage is something of a misnomer. Every item is depreciated. Once you buy something it's worth less. It's called Actual Cash Value settlements. Your deductible has nothing to do with someone else's damage, only your own.

Does that help?

I have full coverage on by car for the very reason if an accident happened the insurance company would pay any claims over my $250.00 deductable.
They say that's the way insurance works they do not make anyone better off then when before the accident happened. Meaning the garage door is not new and with their depreciation of it they say it has a value of $700.00.
That does not may any sense to me.
My understanding is if I hit some one they get their property repaired an I only pay my deductable.
I think the claim should be paid in full for the new door minus my deductable of $250.00.
What am I missing?
 
It's not your company's responsibility to buy them a new door. They are required to put them in the same position prior to the loss...having an old door. If they want replacement cost on the door, they can turn it in to their insurance company. Their company will subrogate against your company but still only get $700. Your neighbor will have a deductible and a claim on their insurance. There is no deductible on liability claims but your company only owes ACV on the garage door.

Your deductible only comes into play when you need to repair the physical damage on YOUR CAR. And when it comes to your car, your insurance company is going to repair it or total it depending on the damage. And if the damage is greater that the ACV of the car, you're getting the ACV of the car, not a new car.
 
In most states, there is ample case law that liability insurance pays on an ACV, not a replacement cost, basis. Replacement cost coverage is a first-party benefit where the terms are agreed to by the contracting parties. Third-party valuation is based on tort law and it usually holds that the negligent party is liable only for ACV. That being said, the amount of depreciation is debatable.

Here is an article on this:

Virtual University - ACV vs. RC Recovery in Liability Claims
 
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