Insurance/Recovery Tips
Recovering held back depreciation
If you're well into your insurance claim, you might have noticed that the insurance company sometimes does not give you the full "Replacement Cost Value" (or RCV) up front. In most policies they have the right to hold back the depreciation and only give you the "Actual Cash Value" (or ACV) of an item then once you've expended the money to replace the item you can recover the depreciation. The difference between the RCV and the ACV is the held back depreciation.
For example, say you had a couch that you estimated would cost $2,000 to replace, but the insurance company only gave you $1,250 as the ACV. Once you went and replaced the couch, you found the actual RCV was $2,145.35 and you have a receipt for the item at that cost. If you have a replacement cost policy, the $895.35 difference can be recovered from the insurance company if your claim was not closed by legal negotiations and you have not yet reached the limits for the coverage in question (which in the example is the personal property coverage).
Send copies of your receipts to the insurance company documenting the difference and request a check for the held back depreciation.
Earthquake Insurance?
I hope all of the recent shaking in Southern California has been a not-so-subtle reminder that everyone should have earthquake insurance! The coverage might not be as good as your home owners insurance (with the high percentage deductable and no "guaranteed replacement" option) but time and time again I've seen that when the big one hits, some insurance is better than no insurance.
If you don't have it, call today. For our out-of-town subscribers, if earthquake insurance is not sold in your area look into flood insurance!
Here's a link to an article about the most recent quake:
http://www.nbclosangeles.com/news/local-beat/Earthquake-97985429.html
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Still working on your ALE Claim?
If you're still working on your Additional Living Expense claim, consider these items from our ALE handout.
Partial list of items covered:
- Hotel expenses: tips, dining out, parking
- “Moral” obligation to pay for housing with friends or relatives (according to AICPCU)
- Additional driving mileage at a reasonable per mile rate (see current IRS mileage rates)
- Childcare expenses above normal expenses
- House cleaning service above normal expenses
- Cost to install and hookup fees for cable and utilities
- Cost to install phone and forward number to temporary addresses
- Cell phone, telephone, postage costs above normal expenses
- Utility bills to temporary power poles might be charged at a higher rate than normal residential rates. The difference between your old rate and the new rate.
- Extra supplies related to living in an RV such as toilet chemicals and difference between the price of regular toilet paper and the special toilet paper you might need to use in an RV.
- Long distance phone calls to insurance company
- Pet boarding
- Meals while in hotel or moving above normal expenses
- Laundry and dry cleaning above normal expenses
- Costs related to documentation of dwelling, personal property losses
- Files, paper, notebook and diary costs related to insurance claim. (These are not personal property replacements but directly related to additional living expenses because of the loss.)
- Expenses related to replacement of licenses, diplomas, certificates, passports
- Storage of replacement contents
Remember: You are entitled to “like kind and quality”.
- House with your amenities
o Pool
o Landscaping
o Workshop
o Sewing room
o Exercise room
o Gourmet kitchen - House decorated with your “like kind and quality” furnishings
o Art work
o Antiques
o Piano, pool table
Length of time for Additional Living Expenses (ALE):
- It has been argued the time – 12 months or 24 months – listed in your policy, should begin when claim is fully settled.
- In a large scale disaster, a 12 to 24 month ALE time limit is unreasonable, at least 30 months is more realistic.
Tax Information
In case you're finishing up your recovery and want some tax tips, don't forget our tax handouts!
http://www.communityassistingrecovery.com/downloads/category/3-tax-handouts.html
2007 Grass Valley Fire For Fire Victims Who Have Not Filed So Cal Edison/Sempra Lawsuit
Early on we received numerous questions about the responsibility of your utility company, Southern Cal Edison/SEMPRA, for the Grass Valley Fire causation. At that time we did not have information regarding this issue. However, VERY significant information is now available regarding possible causation by So Cal Edison.
This update is NOTICE to any Grass Valley fire victims who have not filed a lawsuit regarding the 2007 wildfire against So Cal Edison/Sempra to call CARe at 818-216-0123 or email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it — ASAP! If you had fire damages and have not sued the parties responsible for your uninsured fire losses, you MUST ACT IMMEDIATELY OR FOREVER LOSE YOUR RIGHT TO SUE FOR ANY FIRE LOSSES.
Recently a Los Angeles attorney had a major success in settling all of his cases in the 2007 SEMPRA Witch and Rice Fires claims. This victory reinforces the wisdom of good legal strategies CARe has seen succeed following prior disasters. Since the 1994 Northridge earthquake, CARe has learned that attorneys with extensive experience, with appropriately documented and professionally presented cases, and with the financial resources to prosecute major litigation achieve the following successful results:
- Earlier resolutions with better awards
- Minimal costs and stress to clients
- Clients can move on with their lives
We encourage anyone who has not filed a claim to immediately call CARe at 818-216-0123 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it if you have any questions or need to determine the best way to proceed.
George Kehrer, Executive Director, CARe
