These listed good faith duties are taught and explained in the insurance industry. In most cases when we are forced to get involved, we find that these rules of adjustment have been broken and are the cause of our clients problems. Good insurance companies strive to make certain these rules are never broken.
Source: Merlin Law Group
Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and the deductible from the homeowners insurance that your neighbor may have if the loss occurred as a result of your neighbor's negligence.
Source: Insure Online
A property loss consultant is a professional who provides expert property insurance claim advice and helps policyholders with their property insurance claims process. Aside from attorneys and public adjusters, property loss consultants act as a liaison between the policyholder and their insurance/adjustment companies. They are well versed in handling all types of property loss cases to ensure their client receives the absolute best compensation possible, following some type of property damage loss.
Experience, Knowledge, and Training. It's rare that you will find the experience and training that Woodlyn Schwartz has to offer risk managers. Our sole business is focused on risk & property loss consulting.
If you have ALE coverage, your insurance company should reimburse you for temporary housing. They may arrange housing for you. Generally you will need to make your own arrangements.
In today's insurance world, deductibles and exclusions need to be budgeted for as there will be high out of pocket costs following a large loss incident. A understanding of the right and obligations of the members of the associations regarding insurance coverage, disaster planning and recovery is critical to a successful recovery.
You should retain a property loss consultant as soon as possible after a loss. It's always easier to get the issues taken care of early on rather than trying to turn things around later once your insurance company has already made an agreement.
HO1 – Basic Form Homeowner Policy
A basic policy form that provides coverage on a home against 11 listed perils; contents are generally included in this type of coverage, but must be explicitly enumerated. The perils include fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. Exceptions include floods, earthquakes. Most states no longer offer this type of coverage.
HO2 – Broad Form Homeowner Policy
A more advanced form that provides coverage on a home against 17 listed perils (including all 11 on the HO1). The coverage is usually a “named perils” policy, which lists the events that would be covered.
HO3 – Special Form Homeowner Policy
The typical, most comprehensive form used for single-family homes. The policy provides “all risk” coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. (Note: “All Risk” is poorly termed as it is essentially named exclusions (ie, if it is not specifically excluded, it is covered))
HO4 – Renter’s Insurance
The “Tenants” form is for renters. It covers personal property against the same perils as the contents portion of the HO2 or HO3. An HO4 generally also includes liability cover for personal injury or property damage inflicted on others.
HO5 – Premier Homeowner Policy
Covers the same as HO3 plus more. On this policy the contents are covered on an open peril basis, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for that cause of loss. (can also be achieved by endorsing an HO15 to the HO3)
HO6 – Condominium Policy
The form for condominium owners.
HO8 – Older Houses
The “Modified Coverage” form is for the owner-occupied older home whose replacement cost far exceeds the property’s market value.
For each policy, there are typically 5 classifications of property coverage. These are based on standard Insurance Services Office or American Association of Insurance Services forms.
Coverage A – Dwelling
Covers the value of the dwelling itself (not including the land). Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, losses will be adjusted at replacement cost, up to the policy limits. This is in place to give a buffer against inflation. HO-4 (renter’s insurance) typically has no Coverage A, although it has additional coverages for improvements.
Coverage B – Other Structures
Covers other structure around the property which are not used for business, except as a private garage. Typically limited at 10% to 20% of the Coverage A, with additional amounts available by endorsement.
Coverage C – Personal Property
Covers personal property, with limits for the theft and loss of particular classes of items (e.g., $200 for money, banknotes, bullion, coins, medals, etc.). Typically 50 to 70% of coverage A is required for contents, which means that consumers may pay for much more insurance than necessary. This has led to some calls for more choice.
Coverage D – Loss of Use/Additional Living Expenses
Covers expenses associated with additional living expenses (i.e. rental expenses) and fair rental value, if part of the residence was rented, however only the rental income for the actual rent of the space not services provided such as utilities.
Covers a variety of expenses such as debris removal, reasonable repairs, damage to trees and shrubs for certain named perils (excluding the most common causes of damage, wind and ice), fire department changes, removal of property, credit card / identity theft charges, loss assessment, collapse, landlord’s furnishing, and some building additions. These vary depending upon the form.
In an open perils policy, specific exclusions will be stated in this section. These generally include earth movement, water damage, power failure, neglect, war, nuclear hazard, septic tank back-up expenses, intentional loss, and concurrent causation (for HO-3).