Is there a standard payout of personal property loss due to fire Lisa Ballew asked 5 months ago
Is there a standard payout of personal property loss due to fire

My family suffered a total loss of our home of 17 years due to an electrical fire on October 1st, 2022. We were significantly underinsured and have been struggling to rebuild and recover. Our insurance company automatically paid us 60% ($124,000) of our personal property coverage limit. They are requiring us to submit an inventory list of our property. They will only make an additional payment if we show we spent more then $124,000 replacing items in that list and we have to turn in receipts proving that.

I read on your website that it is standard to payout 70%. I am curious what that statement is based on and can you help direct me to resources to help me argue that they should at least pay 70%. So much of what we lost is irreplaceable and it is impossible to account for every item we lost. I’m willing to put together a list to show it. But to expect us to replace all those items to receive reimbursement for what was lost seems unfair and unjust. Thank you for help or resources you can provide me.

1 Answers
United Policyholders Staff answered 3 weeks ago

Dear Lisa,

Thank you for reaching out to us. We apologize for the delay in responding to your question. A few states have passed laws that require that in the event of a disaster, insurance companies must pay out a percentage of contents benefits without an inventory and without requiring the homeowner to spend/replace before they’ll pay full benefits owed. Montana does not have that law. However, there is no harm in sending the insurer a letter requesting a cash-out settlement. Otherwise, you’ll need to continue replacing items and submitting receipts until you’ve reached your policy limit. Here’s a sample letter you can customize to make the ask:

Sample Letter Asking for a Personal Property Claim Settlement

Best of luck,

Team UP