File Your Own Homeowners Claim to Receive Replacement Cost Benefits

If you have a replacement cost homeowners insurance policy, it means that your insurance company pledged to pay "new for old".  In other words, if your 10-year old roof is damaged by a storm, the insurance company will pay for a new roof, not a 10-year old roof.  Read your policy closely because this promise is subject to the terms and conditions of your policy.

We are starting to notice a trend where policyholders have claims that were caused by a third party, such as smoke from a neighboring property or a car running into their house.  Instead of taking the claim, the policyholder's own insurance company advises them to file a claim with the responsible party's insurance company.

If you read your homeowners policy closely, you'll see a section regarding "subrogation".  Subrogation is when your own insurance company pays your claim and then pursues the responsible party (or the responsible party's insurance company) for reimbursement.  

As the homeowner, you benefit from filing a claim with your own insurance company because:

1. You are able to recover depreciation, where it would not be possible from a third party insurer (i.e. you get paid the full amount for new materials, not the lower depreciated amount.)

2.  If your own insurance company successfully subrogates against the responsible party's insurer, typically your deductible will be reimbursed. 

You pay premiums to your own insurance company.  They should have your back when a claim occurs, especially when it's caused by a third party.

Call The Fair Claims Group Inc at 844-324-FAIR (844-324-3247) or email info@fair.claims and we'll be happy to help you further with your claim.