We lost our house in the Marshall Wildfire. The insurance company paid out the limit on our structure minus depreciation. We have a 20% extension on the structure and other structures portion of the policy. My adjuster says that if we get the full 20% extension, we will not get the depreciation back. It is a new for old policy. Can anyone tell me if this is right?
William Dosssett asked 1 year ago 1 Answers
Katie Goodrich Expert answered 1 year ago Hi William,
I’d suggest that you ask for a full copy of your insurance policy. I have yet to see a policy that would prevent you from collecting depreciation if you tap your 20% extension, up to the limits of your policy. Maybe the adjuster meant that if your loss exceeds your policy limits (including the 20% extension), then you cannot collect all of the depreciation because your loss will be above your policy limits? In adjusting your claim, the insurance company will not pay more than your policy limits plus your 20% extension.
Your insurance company’s obligations should be spelled out in the policy. If you have trouble understanding what the policy says, or if your insurance company is not honoring the language in the policy, then you probably should speak with an attorney about your options. Another option would be filing a complaint with the Colorado Division of Insurance, here is a link to their complaint page: https://doi.colorado.gov/for-consumers/file-a-complaint
I sincerely wish you all the best as you navigate the recovery process!
Katie
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