Calculation Of Homeowners Claim

If someone in Weatherford, Mineral Wells, Aledo, Azle, Springtown, Hudson Oaks, Willow Park, Millsap, Brock, Cool, or some other place in Parker County suffers a loss that should be covered by their homeowners insurance, one of the first things they should do is to consult with an experienced Insurance Law Attorney.
The Texas Department of Insurance (TDI) use to require that all homeowners policies written in Texas require a certain format and contain certain required coverages in that homeowners policy. In recent years TDI has allowed insurance companies to write their own policies without as much over sight. However, most policies are still following the rules as outlined by TDI.
These current homeowners policies follow two basic forms. One is called the Homeowners — Form A (HOA) and then other is referred to as Homeowners — Form B (HOB).
A loss involving personal property is calculated differently under the HOB policy than is a loss to a dwelling. A loss to the dwelling is calculated based on the following policy language:
Our limit of liability for covered losses to the dwelling and other structures under Coverage A (Dwelling) except wall to wall carpeting, cloth awnings and fences, will be at replacement cost settlement subject to the following:
(1) If, at the time of loss, the Coverage A (Dwelling) limit of liability is 80% or more of the full replacement cost of the dwelling, we will pay the repair or replacement cost of the damaged building structures, without deduction for depreciation.
(2) If, at the time of loss, the Coverage A (Dwelling) limit of liability is less than 80% of the full replacement cost of the dwelling, we will pay only a proportional share of the full replacement cost of the damaged building structures. Our share is equal to:
Replacement Cost of the Loss X Coverage A (Dwelling) Limit of Liability 80% of Replacement Cost of the Dwelling (3) If, at the time of the loss, the actual cash value of the damaged building structures is greater than the replacement cost determined under (1) or (2) above, we will pay the actual cash value up to the applicable limit of liability.
We will pay only the actual cash value of the damaged building structures until repair or replacement is completed. Repair or replacement must be completed within 365 days after loss unless you request in writing that this time limit be extended for an additional 180 days. Upon completion of repairs or replacement, we will pay the additional amount claimed under replacement cost coverage, but our payment will not exceed the smallest of the following:
(1) the limit of liability under this policy applicable to the damaged or destroyed building structures;
(2) the cost of repair or replace that part of the building structures damaged, with material of like kind and quality and for the same use and occupancy on the same premises; or (3) the amount actually and necessarily spent to repair or replace the damaged building structures.
Based on the writing in the second paragraph above, it is important that each person experiencing a loss, read their policy closely and get with an attorney to make sure they are getting compensated fully under the policy they have paid for and for the loss they have incurred.
While this writing deals with the structure, it is also important to be aware of coverages for the contents of the property and to read the policy carefully to make sure there is full compensation, under the policy, for the damages that may be incurred for the contents.