Insurance Lawyer recommendation?

[calgaryblood]

Hi guys, so my parents who have been with Wawanesa for 25 years recently had their home broken into and had a safe stolen with Jewelry worth around $12,000 stolen among other items. Today my dad gets an offer and they have a $5000 depreciation hit for jewelry because it's a cash settlement. The jewelry belonged to my mom who got it from her mom over 50 years ago so as you can imagine it meant a lot to her sentimentally.

She has no use for new shiny jewelry and would rather take the cash settlement. But the insurance is insisting she either buy new jewelry and provide a receipt to get fully reimbursed or take a $5000 hit.

I've talked to State Farm agents and TD agents and they both tell me they do not do that at all and offer full cash settlements without depreciation on jewelry. And I went over my parent's policy and there is no mention of this anywhere. Is this common practice? scare tactics by agents to get them to accept a lowball offer?

Can anyone either give some helpful advice or recommend a good insurance lawyer in case it has to go that route? Thanks a lot.

[Slava]

I'm not an insurance lawyer, and you won't like my comment, but usually homeowners policies are replacement cost if you replace and actual cash value if you take the cash. I'm surprised that those other companies wouldn't depreciate it.

[Flames_Gimp]

just had a large claim with wawanesa and unfortunately that's the way it works. they give you half and either you just keep the half or provide the receipt to get the rest.

[CorsiHockeyLeague]

Originally Posted by Slava

homeowners policies are replacement cost if you replace and actual cash value if you take the cash.

What could provide better evidence of "actual cash value" than replacement cost?

[Slava]

Originally Posted by CorsiHockeyLeague

What could provide better evidence of "actual cash value" than replacement cost?

well how much could you actually have sold the items for a minute before the loss? So a TV that is $1000 on the shelf at Best Buy would sell for what...$350? That's the actual cash value as opposed to replacement cost.

[calgaryblood]

Originally Posted by Slava

I'm not an insurance lawyer, and you won't like my comment, but usually homeowners policies are replacement cost if you replace and actual cash value if you take the cash. I'm surprised that those other companies wouldn't depreciate it.

Even so, how is my parents gold's ACV less than what it's actually worth? Gold doesn't depreciate. The actual cash value of gold that is worth $10,000 is still $10,000 real dollars is it not? Or am I missing something that is going completely over my head. I can get electronics getting depreciation deducted but gold? That just pisses me off. My parents have been with them for so long and have multiple properties insured with them and this their first claim on their house and it just seems like they want to squeeze onto every penny. I get insurance are out to make money but a little common sense should be used.

[Slava]

Originally Posted by calgaryblood

Even so, how is my parents gold's ACV less than what it's actually worth? Gold doesn't depreciate. The actual cash value of gold that is worth $10,000 is still $10,000 real dollars is it not? Or am I missing something that is going completely over my head. I can get electronics getting depreciation deducted but gold? That just pisses me off. My parents have been with them for so long and have multiple properties insured with them and this their first claim on their house and it just seems like they want to squeeze onto every penny. I get insurance are out to make money but a little common sense should be used.

Well I just look at my wedding ring or watches or things like that and I know that despite gold being like $1100/oz that there is no way I could actually sell those items for that kind of price. I'm far from an expert on jewelry and am really the wrong guy to ask about that. Its just that the actual value of those things to me is less than what I originally paid for them.

[Kjesse]

Check whether the policy has a specific rider for jewelry. It costs extra and is not included with standard coverage in most cases. It may also have requirements such as appraisals before the insurer will agree (or not agree) what value to cover the jewelry at.

Since you're asking these questions, your parents probably don't have a jewelry rider beyond basic coverage.

[FlamingHomer]

Take the replacement jewelry offer then return it later for a cash refund. Check the store's return policy verrrry carefully first.

[Raekwon]

Was the jewelry scheduled? they have limits. Is it possible they did not depreciate the gold but are paying cash up to the policy limits? That sounds more like the case here

jewellery, watches, gems, fur garments and garments trimmed with fur up to $6,000 in all;


Policy: http://www.wawanesa.com/resources/do...oklet_0514.pdf

[Simanium]

Instead of settling for Actual Cash Value, replace the jewelry at the original value and submit the receipts for replacement cost. When you get the cheque from the insurer, return the jewelry at the store for the cash refund.

[calgaryblood]

Originally Posted by Raekwon

Was the jewelry scheduled? they have limits. Is it possible they did not depreciate the gold but are paying cash up to the policy limits? That sounds more like the case here

jewellery, watches, gems, fur garments and garments trimmed with fur up to $6,000 in all;


Policy: http://www.wawanesa.com/resources/do...oklet_0514.pdf

Their policy covers $10,000 but they will only pay $5000 if it's a cash settlement. I talked to the insurance bureau of Canada and they said this was normal but they do negotiate. So maybe TD and State Farm are different? Or they just would do a bait and switch I you ever had to file a claim.

[calgaryblood]

Originally Posted by Simanium

Instead of settling for Actual Cash Value, replace the jewelry at the original value and submit the receipts for replacement cost. When you get the cheque from the insurer, return the jewelry at the store for the cash refund.

They would never do that. I wish they would because they are getting the short end of the stick.

[GullFoss]

1) buy jewelery from tiffanys
2) submit receipts to insurance
3) return jewlery to tiffanys as soon as receipts are submitted
4) profit

Sent from my SGH-I337M using Tapatalk

[Flames_Gimp]

they are willing to replace the lost jewelry, and yet you feel like they are getting the short end of the stick?

[pylon]

And I also love the people suggesting they are getting ripped off by the insurance company, but yeah.... go ahead and rip off a retailer to get back at them.

[undercoverbrother]

Originally Posted by pylon

And I also love the people suggesting they are getting ripped off by the insurance company, but yeah.... go ahead and rip off a retailer to get back at them.

What is the point of insurance companies if not to complain about them and try to screw them.

[Jacks]

Get the jeweler to make you up 10 x 1oz gold bars hanging from a cheap chain. Voila, $12,000 necklace.

[calgaryblood]

Originally Posted by pylon

And I also love the people suggesting they are getting ripped off by the insurance company, but yeah.... go ahead and rip off a retailer to get back at them.

Exactly why they wouldn't do that. They've always been on the straight and narrow.

[calgaryblood]

Originally Posted by undercoverbrother

What is the point of insurance companies if not to complain about them and try to screw them.

The only thing really worth complaining about is the conduct of the Calgary Police. I get they are busy but this happened over 3 months ago and it took them up until last week to send the insurance a police report and they did not return a single phone call or message. N.W.A said it best.