Homeowner's Insurance: Base policy limit for Personal Property

MartinJ

Expert
28
My home in California burned down recently in one of the Los Angeles fires. To my surprise, my insurance company automatically sent me, among other things, 50% of the base policy limit for 'personal property'. It's strange because the guy from the Insurance company that is supervising my claim had told me that by law, they have to give me 30% of the base policy limit for Personal Property. Yet, again, they sent me 50%. Perhaps the supervisor misspoke when he said 30%. I've read that it's supposed to be 30%. At this early stage, they have not done any kind of assessment of my actual personal property loss amount.

They also sent me 80% of the base policy limit for my dwelling.
 
35 years in the insurance industry and I've never heard of any "law" mandating that kind of payment and I doubt that your claim rep can provide you with a statute number. Doesn't matter. Could just be company practice to make an advance payment on a catastrophic claim and leave additional documentation up to the insured. Meantime they are moving claims along and closing them quickly. Makes a lot of sense to do that. They can be re-opened with a keystroke if further information is presented.
 
What is your dwelling (A) limit and your personal property (B) limit?

And the dollar amounts you were paid for each?

Was there any written explanation given about the payments? If so, what did it say?
 
So far I've been paid 80% of the 'limit' to rebuild and 50% of personal property. The house was a total loss. Once the adjuster makes an estimate, then I expect to be paid more for the cost to rebuild.
 
So far I've been paid 80% of the 'limit' to rebuild and 50% of personal property. The house was a total loss. Once the adjuster makes an estimate, then I expect to be paid more for the cost to rebuild.
(I am not an agent.)

It's possible they might ask to see receipts for total expenditures before they reimburse additional funds between the starter payout and the maximum allowed amount allowed by the adjustor for the claim. (That has been my personal experience in another state with a carrier on a partial damage claim.)

As somebody remarked to you in another thread, obtain and keep receipts for everything.
 
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