# Home Owners Insurance Claim Over 10,000 Q



## 2500Ram (Oct 30, 2005)

Any insurance agents or Mortgage lenders in the house???

Long story short I hope. Over the summer our house took a lightning hit. Blew out all the TV's, smoke detectors, garage door openers much more and the piece in question our pellet stove. I was too busy to get the pellet stove fixed but had everything else replaced and the ins co cut me a check.

Now I have the time to fix/replace the pellet stove I was required to get a quote from a company for repair. A repair man came out and said $1800 to repair. Ins company said the stove is only worth my price paid 2700 so they want to replace the stove. Cool, new stove. Get a replacement quote with install. So I do. They don't make my stove anymore so I have to get a different brand of like kind and quality. So I get the quote and basically I have to gut my entire entertainment center to allow the new stove to fit and meet new code. This quote is over 8000 for install and stove.

Problem is I don't want to demo the entertainment center I custom built. I'm proud of what I did and don't want some monkey (no offense to anyone) to rebuild it to allow for a new stove and code. My current stove is/was in code and told the agent I don't want to replace it. Long and short they want to close the case and are going to cut me a check for approx 8k to replace the stove and do the tile, drywall, piping etc myself.

Way cool, but the check and total claim take me over 10,000 and there for the check is going to be written to me and my mortgage company. Why?

What little I was able to google is after Rita people were taking the ins money and not fixing what they were supposed too and the value of the homes was not repaired/replaced. I understand the "bank" owns the house and the money is going into an escrow balance but why can't I have the money and fix it at my time. Why to they hold the money and only cut me a check with a receipt for proof of purchase. My insurance co doesn't care. I've been honest with them and they've been good to me.

Is there any chance of getting the 8k from the bank and when I can find a stove to fit my hearth/entertainment center buy it with my insurance money or am I stuck with this escrow balance until then.

Sorry so long.

This is the stove. I would have to bump it flush with the side pockets approximately 20 inches.


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## ember (Jan 17, 2008)

I don't know about dealing with the bank, but NICE JOB on the entertainment center. As far as the pellet stove, and I'm not an expert!! BUT pelletstove technology really hasn't changed that much in the last ten years, the only electronics are for the auger motor, fan motor and thermostat if you have one!! I'd have another company come look at the stove!! We have one in our house, and have installed several for our customers. Or PM me, and I'll send you the name and number of our guys so you can at least talk with them. 
TTFN
Ember


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## Tex Ag (Jan 28, 2006)

I had a $30+k claim on my house last year (flood while I was camping of course). I was able to get the bank to waive the cosign and allow the insurance company to make all checks stright to me. I can't remember the whole process, but basicly showed the bank I had more equity than there was damage. They were pretty reasonable once I got to someone able to make a decision.

Good luck. Hope this helps.


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## puffer (Aug 28, 2008)

I just had a $7000 claim and my bank required any thing over $5000 to be written to them AND me. The check was sent to me,then i had to send it to the bank and they signed it and sent it back to me within a week. I asked them why and they basicly said they want to make sure the house payments are up to date and we are not just planning to take the money and walk from the home leaving it a mess. If it would have been less than $5000 they would have cut me a check direct.


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## PDX_Doug (Nov 16, 2004)

I guess I'm missing something here...

The existing stove will cost $1,800 to repair, but the insurance company thinks that is too much and doesn't want to pay it.
As a compromise, they offer to cut you a check for $8,000 to replace it.

<Pregnant pause>

Now I'm no salamander, but it seems to me that an insurance company would better serve it's investors by cutting you a check for $1,800, and keeping the $6,200 difference. Your get your stove fixed without having to destroy your house, and are therefore a happy camper. They save themselves over six grand.

Like I said... I guess I'm missing something.









Happy Trails,
Doug


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## bbwb (Apr 4, 2008)

I believe the reason for full replacement vs repair is that the existing installation does not meet current code. Usually when the repair exceeds 65% (not too sure on the percentage) then full, current code compliant repairs must be done. If they were to proceed with a repair and there was a fire down the road, they would be opened up to some liability.

bbwb


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## 2500Ram (Oct 30, 2005)

In a nutshell bbwb hit the nail on the head and also the ins company just wants the claim closed. "If" I were to repair the current stove I would need to provide receipts and new permits back to the ins co. Not sure what would happen to the leftover money.


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## PDX_Doug (Nov 16, 2004)

I guess I misunderstood. I thought the current stove was in compliance with code, but that because of a change in design the new stove would not be. If that is the case code would not be an issue for a repair.

If the issue is that the current stove itself is no longer in compliance with code, then you may have a bigger issue to face. Your insurance company now knows you have a wood stove installation in your house that does not meet code (read: fire hazard), and that could very reasonably have an effect on their willingness to continue to insure you.

Not what you want to hear, but in my experience insurance companies tend to be a little squeamish when it comes to risk. Not to mention a known code violation.

Happy Trails,
Doug


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## 2500Ram (Oct 30, 2005)

The current stove is in code and I have the permit to prove that so that is a non issue. What the insurance company wants is "if" I fix it to have it reinspected, meaning pulling a new permit even though I would not be doing anything with the exhaust piping, the main concern with a pellet stove. They just want it visually inspected for it's operation. Self igniting and shutting off via thermostat control.

Now "new" stoves require different metal inserts and clearances that this stove does not require. Is that going to far on the safety side I say yes, but we all know to err on the side of caution (hence the diesel pickup in my sig) Same principle.

Either way the check they cut misspelled my name so a new check is getting cut tomorrow. We'll see what happens....


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## battalionchief3 (Jun 27, 2006)

Wow we dont even have codes where we live....our office does not even have sprinklers in it and it houses Emergency management, Fire/EMS/Hazmat and animal control. Codes are neat.


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## mmblantz (Jul 1, 2007)

We had a tornado take the roof off our house a year and a half ago. The agent came out climbed up on the roof and sent a check for 12K to me 2 days later written out to me only. He talked to me about my lender and just said "what the heck, your guna fix your roof". I don't know for sure but maybe there is some leeway when it comes to issuing the check.

---Mike


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