It’s not a concept that comes up in everyday conversation. But it is the basic premise of all insurance policies. Your average homeowners, business, or property insurance policy is to bring you back to your exact financial position as the day before the loss. This is after deductibles, depreciation, and any prior policy condition that were agreed to.
In short, if you own a typical 2,500 square foot home with basic amenities and it’s destroyed, your insurance policy includes a covered loss. That’s what the insurance company owes for replacing with something of “like kind and quality.” This means that your belongings in your home will be repaired or replaced with items similar to the originals before the loss.
Insurance companies can’t replace your loss with a log cabin, and they are not required to build a Victorian mansion. If you had tile floors, they owe to replace the tile floors. Did you have oak moldings? Oak moldings should be paid for.
Like most people you may not have known or cannot remember how your home or property was constructed or the many components that go into rebuilding. Architects, permit fees, and access issues all need to be considered when valuing the replacement cost of your home or property.
You need the experts in policy and restoration practices that we at Bell Operations Systems provide. We will provide a detailed inventory and all collateral costs to make certain your property is put back the way it was in accordance with your policy and regulatory guidelines. We serve the entire northeast region, including the states of Connecticut, New York, and New Jersey, for insurance claims for policyholders.