Pro-5 contents claim: Is a cash settlement negotiable with the insurer in lieu of remediation?

[Nancy88]

We had a fire in our home which exposed a significant amount of asbestos and other contamination to the entire home and all contents. I received an estimate from a Procedure-5 remediation company in the many 10s of thousands of dollars for the contents alone. I am certain the contents themselves could be replaced for half or less.

Is this type of claim in the purview of our homeowners insurer to negotiate for a cash settlement instead of the massive cost involved with inspecting, assessing, warehousing and remediating? It seems they could easily save 50% or more by making me an offer, but I'm not certain if California law requires the full pro-5 remediation process on all the contents.

 

[adjusterjack]

Insurance laws and the policy (contract) require the insurance company to pay for what is covered by the policy. What you are describing is not permitted.

If you have Replacement Cost on contents you will be paid the Actual Cash Value (depreciated value) of the contents up front and the balance of your actual cost when you have replaced the items with items of like kind and quality.

Example: You have a $40,000 loss of contents. Average depreciation 50%. You would get $20,000 up front. When you replace the items you submit your receipts and get the balance.

Same with the house damage. Except that depreciation on a structure is likely to be about 5% to 10%. You get the balance when repairs are completed.

I'll be happy to answer any further questions that you might have.

 

[Nancy88]

Thanks, this is extremely helpful. Out of our inusrance adjusters and two PAs no one has clearly explained it clearly.

 

[adjusterjack]

You have public adjusters?

Why?

What did they promise you?

What's their percentage?