Wednesday, March 30, 2011

They Accepted Liability - What Does That Mean?

What does it mean when an insurance company accepts liability on a claim?

Ordinarily, that only means they are not going to argue with you about who caused the accident or decrease their payment for that reason.

Does it mean they are going to pay the full value of my claim?

No! Insurance companies can accept liability but then go on to argue about their insured having caused your injuries.  Beware of falling into a false sense of security after hearing the words, "We have decided to accept liability on this claim."  The reality is the fight to be treated fairly may have only just begun.

Wednesday, March 16, 2011

Replacement Cost Policy v. Actual Cash Value Policy

The difference between the two policy types is huge.

With an Actual Cash Value Policy an insurance company only has to pay you something closer to fair market value and they can use a multitude of ways to determine what that is.  Actual Cash Value policies may deduct for depreciation which can add up to a sizable deduction from the payment you receive in the event of a loss.

With a Replacement Cost Policy you are owed for the cost of the replacing the item covered under the policy.

Insurance policies define these terms in different ways depending on the type of insurance at issue.  When you have a property loss it is best to gather your policy and call an attorney to have these issues addressed.  It may be worth your while to contact your insurance agent to ask about the difference between these policy types before a loss occurs.