[StBernard] News You Can Use 9/28/05

[Westley Annis]

Paul,

I am very greatful for the extremely helpful information and suggestions.
As a professionally licensed real estate appraiser, let me also suggest this
to everyone.  While claims adjusters will try to factor in the depreciation
on your home, the policy itself is vague on explaining exactly how it's
calculated, while at the same time your flood insurance policy does talk
about providing coverage to "reconstruct or repair damage to your home" at
"current market replacement costs."  The key word here is "replacement"
cost.

Thus, let me sugget to everyone filing a claim against their flood insurance
policy that it costs the same dollar amount per square foot to rebuild a 20
year old home as it does a 5 year old home, provided both homes have the
same construction quality and amenities.  Everyone needs to "stress" this to
their adjuster.  And, if the adjuster comes up with a figure you feel is
well below what it will cost to repair/rebuild, then I would tell the
adjuster you "do not agree with his/her findings" and you are going to
acquire quotes from contractors to get the "real" cost to rebuild.

Remember, the adjuster's final calculation are not absolute or final, you
can can reject it and file a dispute with the insurace carrier handling your
flood policy and seek your own contractor/adjuster to provide you a more
accurate construction cost figure.  Of course, you can always scare the hell
out of them with these words they dread hearing..."no problem, we'll just go
to litigation."  Trust me, they do NOT want to hear that.  Why? because the
ajuster's job (besides trying to cut you a check for as little as possible)
is to get your claim resolved quickly so they can get onto the next claim -
and because they don't get paid for working the claim until it's resolved
and/or you agree.  Threaten them with litigation and you might find them
suddenly coming around to "your" cost estimates.

As an appriaser, many times I have been hired by homeowners because of such
disputes and belive me, you need to stand firm on what you have found to be
the actual cost to repair or rebuild your home.  Let me repeat, the
insurance adjuster's job is to try and get you to accept as little money as
possible for repairs or reconstruction.  It's a good idea to find
contractors (if you can) to provide you with quotes.

Best of luck to everyone during what will be a very trying experience.  And,
Paul, thanks again for providing the information.

John Scurich
Louisiana Certified Real Estate Appraiser
(504) 722-6662
email:  scurich at bellsouth.net