Friday, May 22, 2015

BP Loss of use-you may be in this grouping..

I am just passing along this info regarding the BP Loss of use claim that I just found out about.

Must file by 5/31/2015 
Basis of Claim:

        If in 2009 you were able to fish at your convenience, keep the fish and feed yourself and the members of your  household. Then in 2010, the oil spill happened and you weren’t able to do the same, which resulted in having to go to the grocery store, restaurant, etc to replace gulf seafood that you otherwise would have been able to catch and feed yourself and the members of your household with, had the oil spill not occurred.
Documentation Needed

       Copy of   Drivers License, as well as one of the following:
-AL or MS fishing license that was valid as of April 20, 2010
                                                              - AL licenses can be looked up online
                                                               MS licenses can be obtained in person from the MS Dept of Marine Resources (1141 Bayview Ave., Biloxi, MS 39530; 228-374-5000)

        -disability documentation stating you were disabled prior to April 20, 2010
- proof that you were over 65 as of April 20, 2010

       If you are interested give Blade a call. That is who I recommend.  His contact info is below.
Direct: 251.279.0611

       Please pass this info along to anyone that may benefit but do know that this has to be filed by 5/31/15.

       Have a blessed day! 

      Michael Fillers, CPIA 
Morris Insurance Agency, LLC
3032 Dauphin Square Connector
Mobile, AL 36607
O - 251-473-5119
F - 251-473-6301
C - 251-753-8011
How I met JESUS in the flesh and HE saved me:

Monday, May 11, 2015

Actual Cash Value vs. Replacement Cost Coverage

Actual Cash Value vs. Replacement Cost Coverage

A few scenarios are below to better your understandings...

How it Works 

Homeowners insurance policies offer actual cash value or replacement cost coverage to replace your damaged, stolen, or destroyed personal property.

 • Replacement cost is what you would pay for the item at today’s cost.
• Actual cash value is what you would pay for a similar item at today’s cost minus depreciation (replacement cost minus depreciation).
• Depreciation is a decrease in value due to wear and tear or age.

Claim Scenario 
Your home and some furnishings were damaged during a recent wildfire. You made a claim to your insurance company and have met your deductible. Now you are looking at replacing the damaged furnishings. Last year, you bought a sofa for your living room for $2,000. The amount of money you will receive to replace your sofa depends on the type of coverage you have.

• If you have actual cash value coverage, the company might pay you $1,500 because that is the actual cash value of the sofa today (replacement cost minus depreciation).
 • If you have replacement cost coverage, the company will pay $2,100 because that is what it would cost to buy a similar sofa today.
Note: If you have replacement cost coverage, most insurance companies will give you the actual cash value of an item and require you to submit a receipt for the new item before paying you the remainder.

• With actual cash value coverage, you will receive a payment from the insurance company for $1,500.
 • With replacement cost coverage, you will first receive a payment from the insurance company for $1,500. When you submit your receipt for the sofa, the company will pay for the difference between $1,500 and the amount you paid to replace the sofa up to $2,100.

$2,100 = Amount of the receipt for your new sofa
$1,500 = Actual cash value of the sofa and amount sent to you by the company after you filed a claim $600 = Amount the company will send you after you submit a receipt for $2,100

Other info/definitions:

What Does "Replacement Cost" Mean?
The term "replacement cost" is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Refer to your policy for the exact definition and explanation of replacement cost.
What is "Actual Cash Value"?
The term "actual cash value" is not as easily defined. Some courts have interpreted the term to mean "fair market value," which is the amount a buyer would pay a seller if neither were under undue time constraints. Most courts, however, have upheld the insurance industry's traditional definition: the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.).

So What's the Difference?
The only difference between replacement cost and actual cash value is a deduction for depreciation. However, both are based on the cost today to replace the damaged property with new property.