Landlord Rental Insurance Claim Advice - Deluxe With Appendix 

Table of Contents

TABLE OF CONTENTS........................................................................................................ 1

INTRODUCTION................................................................................................................ 4

Insurance Claims Are Disagreeable............................................................................. 4

Myths Dispelled............................................................................................................ 4

About Your Attitude and Morale................................................................................... 4

About the Adjuster's Attitude and Morale.................................................................... 5

BATTLE PREPARATIONS................................................................................................... 5

'Battle Gear'................................................................................................................. 6

General Battle Principals............................................................................................. 6

'Estoppel'..................................................................................................................... 7

LET THE GAME BEGIN (YOUR FIRST MOVES)................................................................... 8

Game Plan A (If you have this document from the date of loss)......................................... 8

Loss Day -................................................................................................................ 8

Contents Pack Out and Storage (for rental units you furnish or your vacation home)... 10

The Day After the Loss Day -.................................................................................. 10

Game Plan B (If you have this document a few days up to several years after the loss)...... 11

Correcting Your Mistakes -.......................................................................................... 11

LOSS OF RENTS, FAIR RENTAL VALUE, LOSS OF INCOME and EXTRA EXPENSE ............. 12

Fair Rental Value or Loss of Rents.............................................................................. 12

Loss of Income and Extra Expense.............................................................................. 13

BUILDING STRUCTURE CLAIM.......................................................................................... 14

'REPAIR COST' NEGOTIATIONS...................................................................................... 14

Bid Comparison Worksheet (a waste of everyone's time)............................................ 15

Contesting the Adjuster's Estimate (or his contractor's estimate)............................... 15

About the Insurer's Contractor................................................................................ 18

Acting as your own contractor (or doing your own repairs)........................................ 18

BUILDING STRUCTURE 'ACTUAL CASH VALUE' (ACV) SETTLEMENT................................... 19

'ACV of the Repairs' (based on a repair estimate)........................................................ 20

'ACV of the Entire Structure Value' (based on a real estate appraisal)......................... 22

'How to Deal With a Low Ball Appraisal'................................................................... 25

OTHER BUILDING STRUCTURE CLAIM CONSIDERATIONS................................................. 25

Making a Choice - 'Repair, Rebuild or Cash out'............................................................ 25

Zoning....................................................................................................................... 26

Salvage Value........................................................................................................... 26

Hazardous Materials................................................................................................. 27

Code Improvements (how to get coverage without an endorsement)........................... 27

Choosing a Contractor.............................................................................................. 29

'Coinsurance Penalty Trap'...................................................................................... 29

Common Adjusters Structure Claim Arguments (and your suggested reply).............. 30

CONTENTS CLAIM............................................................................................................. 31

CONTENTS PACKED OUT & STORED................................................................................. 32

PAYMENT FOR RESTORATION......................................................................................... 33

CONTENTS INVENTORY LIST........................................................................................... 33

SPECIAL ITEMS OF CONCERN - ALL COVERAGES.............................................................. 36

'Proof of Loss' (form).................................................................................................... 36

'Replacement Agreement' (form)................................................................................. 37

Tape Recorded Statement........................................................................................... 37

Acting as Your Own Contractor..................................................................................... 38

Salvage on Contents and Building............................................................................... 38

'Examination Under Oath'............................................................................................ 39

Cashing the Check........................................................................................................ 39

Supplemental Claims................................................................................................... 39

FAQS (Frequently Asked Questions)........................................................................... 39

The Deductible............................................................................................................ 39

OTHER COVERAGES AND ENDORSEMENTS...................................................................... 39

'OTHER COVERAGES'.................................................................................................... 39

ENDORSEMENTS........................................................................................................... 39

1. Replacement Cost on Contents Endorsement.................................................... 40

2. Extended or Guaranteed Replacement Cost Endorsement (on structure)........... 40

3. Building Code Improvements Endorsement....................................................... 41

4. Valued Policy Endorsement................................................................................ 41

READING YOUR POLICY (the quick and easy way)........................................................ 42

Special Considerations When Reading Your Policy.................................................... 43

About Policy Form Numbers and Edition Years.......................................................... 44

'BURDEN OF PROOF' (is it on you or the insurer?)........................................................ 45

USING THE LAW TO HELP YOU....................................................................................... 45

HARD BALL TACTICS...................................................................................................... 46

1. Small Claims Court................................................................................................. 47

2. Better Business Bureau Sponsored Arbitration.................................................... 47

3. News Media............................................................................................................ 47

4. Picketing................................................................................................................ 47

5. Other Guerilla tactics............................................................................................. 47

6. 'Policy Appraisal'................................................................................................... 47

7. Litigation................................................................................................................ 49

PROFESSIONAL HELP (Public Adjusters)...................................................................... 50

FINAL NOTE................................................................................................................... 51

APPENDIX......................................................................................................................

These appendix documents are samples of insurance claims documents that I have critiqued. My notes are handwritten in the margins as well as in blue text boxes. My notes are followed by my initials 'rc'. These documents may not be the latest versions and should only be used as a guide to show you how to critique your own unique documents

A - The Policy.....................................................................................................................

A1 - State law overrides policy language..............................................................................

A2 - 'Certification Page' sample of a certified policy...............................................................

A3 - Sample 'DP 3 Rental Dwelling Property Declarations Page' (2 pages)................................

A4 - 'CRPID', California Residential Property Insurance Disclosure, (2 pages)...........................

A5 - Sample ISO 'DP 3' Dwelling Policy for single family rental 1988 (9 pages).........................

A6 - Sample 'BP 03' Business Owners Property Declarations page and index (2 pages)............

A7 - Sample ISO 'BP 03' Business Owners Policy for apartments 2002 (43 pages)...................

A8 - Sample Aetna 'CP' Commercial Property Declarations page for apartments (4 pages)......

A9 - Sample Aetna 'CP' policy table of contents (to help organize your hodgepodge of paper)

A10 - Sample ISO 'CP' policy parts collection, 'a la carte' style (42 pages)..............................

B - Building Structure Claim Documents..........................................................................

B1 - 'Bid Comparison Worksheet' sample (4 pages)............................................................

B2 - Contractor and adjuster various 'itemized' estimate styles, 4 samples (4 pages).............

B3 - Additions to Estimate list, one hand written and one typed (10 pages)............................

B4 - Repair Estimate Depreciation sample (4 pages).............................................................

B5 - Depreciation Guidelines for Building Structure by Marshall & Swift (1 page)......................

B6 - Low Ball Appraisals, 3 samples (43 pages)....................................................................

B7 - Title Company comparable sales reports, 4 samples (11 pages)......................................

B8 - Code Improvement, without endorsement, Clinton Miller publication (3 pages)..................

C - Contents/Miscellaneous...............................................................................................

C1 - Contents Inventory Sheet (your own) 3 samples completed (3 pages).............................

C2 - Depreciation charts for contents, 2 samples (2 pages)....................................................

C3 - Proof of Loss forms, 2 completed samples (4 pages).......................................................

C4 - Release Forms, 2 samples (2 pages)..............................................................................

C5 - 'Replacement Agreement' (1 page)................................................................................