Does Advance On Content, To Be Used As Replacement Contents Come Out Of The Actual Cost Value Portion Of Claim?

1. 

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   David W. Clausen

   Chief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778

   Many insurance companies will issue claim dollars in Actual Cash Value (ACV) until you prove you have replaced the items. This is not all insurance companies but many of them will require proof in the form of a picture, receipt or the likes. I would speak with your claim representative to get clarification on how your company will handle the replacement of contents and what they would be willing to consider "Replacement" of an item. Good Luck. Hope this answer helps.

   Answered on December 12, 2016

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   Thad Bynum

   Owner/ Partner, Bynum Insurance Agency, Inc, Clayton, GA

   When a company issues an advance amount for contents, it is done to help their customer prior to the company receiving the paperwork to process the entire claim. The company requires their customer to complete a description of the items damaged along with the age and cost to replace. The company will then usually pay the actual cash value which is replacement less depreciation. If the customer has replacement cost coverage they then have a period of time, usually 180 days to give notice of the items they will replace. The proceedure will vary from policy to policy depending upon the specific policy form and or edition. Your adjustor should be able to clarify but nothing beats reading your own policy to keep everyone on the same page. You have more of a vested interest in it than anyone.

   Answered on December 17, 2016

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