HO 3; not what you think

[adjusterjack]

Ameriprise is not making me whole and they treat me like I am somehow expecting to much when everything I had has been reduced to 6" of ash and I think I should collect 100% of the insurance I paid premiums for.

My first impression is that you don't understand your policy or the claim process.

All of our trees burned down.

There is a limit of $500 per tree. That's what your premiums paid for.

Our barns burned down.

How many barns and what would it cost to rebuild them with like kind and quality? Your barns are covered for 10% of your dwelling coverage. If your barns were worth more than that you should have bought additional coverage for them.

Ameriprise did not send an adjuster to look and determined we only had a 75% loss for our personal property. They did not tell us that this would change our claim from personal property replacement to actual cash value.

If you have Replacement Cost on your personal property you get the ACV up front and the balance when you have replaced the property. That's what the policy says. That's what your premiums paid for.

They then said a third party would help us do an inventory.

That's up to you. You could do your own inventory.

We can not replace it for 75%.

Yeah, I got the same responses from my policyholders. Nobody says you have to replace it for 75%. You replace it, submit the receipts and you get more money.

The insurance company will not compensate us for the many hours of work involved.

That's right. Your policy doesn't cover your time.

Look, you had a tragedy, your house burned down, I understand that. But you made assumptions about your insurance that just aren't based in reality. Nobody is ever happy with insurance claims and nobody ever gets 100% of everything they think they should get.

 

[VolAgent]

By default an HO-3 does not include replacement cost for personal property. You would either need an HO-5 or to purchase an optional endorsement for replacement cost. It sounds like neither the person on the phone with Ameriprise mentioned it and you didn't know enough to ask.

Most people gravitate to stuff like this because it is cheap. Unfortunately the money saved up front is more than outweighed at claim time.

 

[jerkstore]

Take responsibility for your own mistake here, and find a better insurance agent in the future

 

[InsCommentary]

So you're saying the shortfall is in not receiving replacement cost coverage for your personal property...they're effectively depreciating that replacement cost by 25%?

 

[fed up]

Yup, everything is bigger in Texas, Jerkstore. Fred Zonker, get some legal pads and start doing an inventory. You will be reimbursed for what you spend to replace your items, up to any limit on the policy. Just remember that if there was 450K in personal property listed on the policy, chances are you did not have 450K in your house. That number is a fixed percentage of the Dwelling Cost on most policies. Your insurance carrier reserves the right to replace items at their cost. A $2000 piece of jewelry might be replaceable at $1200 when they shop. See if you can get credit card and check receipts from your banks for any large purchases which you made, it helps to prove items were in the house. You won't be paid a wage for the time it takes to get your info together but you might get the flat panel tv replaced that doesn't have a serial number written down anywhere. You will most probably be made whole in the sense that your house is rebuilt within a year or so and you have clothes and furniture similar to what was there before the fire. Your claim will not be settled for at least a year. Find time to do the inventory

 

[InsCommentary]

I have a semi-retired colleague who did pro bono consulting for victims of the Colorado Waldo Canyon fire. One of the most surprising things he found was how few broadening endorsements were added to the basic homeowners policy. There are usually DOZENS of ways to broaden coverage, but either consumers aren't interested in hearing about them and considering the options because they're focused on price or the options are never offered, something that happens with direct and online do-it-yourself purchases where the vendor says they can place your insurance in 3 minutes so you can get back to something more productive like watching Duck Dynasty reruns.

Also, being a former independent agent, he was surprised that the most limited policy packages were from independent and captive agents while some of the best coverage he saw was through GEICO. That's embarrassing.

 

[Markthebroker]

I shopped my personal insurance around a few years ago. Costco Ameriprise came in with the cheapest quote by far. They are generally the cheapest in most situations I found when I used to write personal insurance. After I finished shopping my own insurance around, I did some basic research that anyone with an internet connection and 0 insurance background could have done.

I found that while they were the cheapest, their customer service and claims handling was terrible.

One the one hand I genuinely sympathize and feel terrible for the op. On the other, I am pretty sure they went with Costco Ameriprise because they were the cheapest, and for no other reason, and either neglected to do some basic research, or completely ignored the warning signs, or likely both.

 

[adjusterjack]

either neglected to do some basic research, or completely ignored the warning signs, or likely both.

You got that right. It's ironic. People will buy an $800 smart phone and learn every complicated app that's available but they'll buy an insurance policy that never leaves the envelope it came in because "I can't understand it." Then whine about the big bad insurance company when they have a claim.

 

[rousemark]

You got that right. It's ironic. People will buy an $800 smart phone and learn every complicated app that's available but they'll buy an insurance policy that never leaves the envelope it came in because "I can't understand it." Then whine about the big bad insurance company when they have a claim.

And, they will "do it themselves" online to save a few bucks instead of going with a good agent who would explain all their coverage before the disaster strikes, Then they complain they did not understand what they bought...

 

[InsCommentary]

And, they will "do it themselves" online to save a few bucks instead of going with a good agent who would explain all their coverage before the disaster strikes, Then they complain they did not understand what they bought...

They can’t complain about that at a do-it-yourself web site or phone app and that’s what the insuretechs are counting on.