These are the facts as I understand them. If any of these facts change – the outcome of this adjustment will also change.
Named insured:
Jezebel Brown – Living in insured premises, separated from Bubba
Bubba Brown – Separated from Jezebel and currently living with Jill in an apartment
Other Parties:
Elton Jack - Living with Jezebel in the insured premises, separated from Jill
Jill Jack - Living w/ Bubba Brown in Apartment, separated from Elton
Bumper Jack - Son of Elton & Jill was staying with Jezebel and Elton in the insured premises for a few days before ski trip.
Jumping Jack – Son of Elton & Jill currently living in the insured premises
First Mortgage Company – Outstanding balance at time of fire $139,000
Some Dumb Bank – Outstanding equity balance of $100,000 secured by Bubba unbeknown to Jezebel – also valued the house at $250,000
Home Supply Co. – Delivered $2600 worth of building materials on behalf of Elton to insured premises
Kitchen Remodel – Rent to Own Washer/Dryer, Oven & Dishwasher by Jezebel $117/month for 24 months – 3 months have been paid ($351 out of $2808 owed)
ABC Classic Cars – Replaced fuel pump on Elton’s VW 2 days before fire. Was determined by C & O expert to be cause of fire.
Settlement:
Coverage A: $160,000
The house was recently appraised at some dumb bank for $250,000 two weeks before the fire – we obtain a copy of this appraisal.
RCV: $250,000
Ded: $1,000
Subtotal $249,000
Total Payout $160,000
*Note – while it is apparent this property was underinsured by 56%, if you estimate that the depreciation on the house was 25% (62,500), you still have the ACV at $187,500, well above the limits of liability. In fact, you could depreciate the house up to 36% and still = the limits of liability.
Check #1 $139,000 paid out to First Mortgage Company/Jezebel Brown/ Bubba Brown
Check # 2 $21,000 This check is held until it can be determined from the legal department whether Some Dumb Bank has an insurable interest for all or part of the remaining settlement. If there is an insurable interest the check will be made out to Some Dumb Bank/Jezebel Brown/Bubba Brown.
If it has no insurable interest – then this check will be made out to Jezebel Brown/Bubba Brown.
Home Supply Co. $0 – ($2600 Claimed) - while the materials were delivered to the property for the construction of a studio on the property, it was not authorized, nor paid for by either named insured. The fact that they were not paid by Elton is a problem between Home Supply Co and Elton, not the named insureds.
Coverage B: $16,000
I do not find anywhere that any other structures where damaged.
Coverage C: $80,000
Elton’s Music Equipment: $0 ($30,000 claimed) - Not covered. Elton is neither a named insured nor a relative. It should be insured by Elton & Jill’s Homeowners policy on the vacant house.
Elton’s VW $20,000 Not covered – specifically excluded in item 4 personal property – he should consult his auto coverage
Jill Jack 56” TV Not covered - Apparently not destroyed – just needs to be cleaned, Jill is neither a named insured or a relative, but should be insured by Elton/Jill’s HO or by Jill’s Renters Policy.
Jumper Computer & Video Cam - Not Covered
Elton’s Personal Property - Not covered.
Jumping Jack’s Property Not covered, as Jumper is not in the care of a named insured or a relative.
*Note: A case could be made if the named insured request it, the personal property of
guests on the insured’s premises would be covered. I can’t see Bubba going for this as he
is already going to be out a lot and he doesn’t give a rats behind about Elton or his silly
music Biz.
Bubba’s Gun & Safe $10,000 - Covered – to be split between Dwelling insurance $5000 and Bubba’s renter’s insurance policy $5000 “which is usually at any Insured’s residence, other than the dwelling described in the Declarations” (apartment) Up to 10% of the $60,000 coverage is available. To be paid at ACV.
Kitchen Remodel Co. $2457 claimed – Covered – Owed to Kitchen Remodel Co They have an insurable interest as this was bought by Jezebel. This is ACV.
Jezebel & Bubba Personal Property on the premises. This will be paid out at ACV up to
the policy limits upon presentation of itemized lists and or proof of ownership or receipts.
ALE Coverage: $48,000
2 Weeks of Hotel @ 168 a day is $2352. I believe this is for 1 room. If the bill
shows for more than one room, this amount will have to be adjusted accordingly. (Not
my job to police who stays in the hotel room with Jezebel, but don't owe for anywone else)
Since Bubba is already living somewhere else and Elton, Jumping and Bumper Jack are
not relatives nor in the care of Jezebel (they are in the care of Elton) they are not
covered. Owed to date for food $560.
For a total of $2912 to date.
Going forward Jezebel should find a suitable place that is equivalent of the insured premises
to rent and then permanently relocate. Never the less, the limits of liability on this
coverage is $48,000. or about 16 weeks in the above scenario does not change.
Additional Coverage: Debris Removal – up to $8,000.00 Available will be paid upon presentation of receipts.
Trees & Shrubs $2500.00 (up to $8000 was available)
Fire Call $500.00 of the $750.00 Invoice (Since this is Chambers County and not within a municipality it would be covered)
Also – 11 months worth of pro-rated premiums are owed back to Jezebel and Bubba Brown as this is a total loss and the policy will be cancelled upon settlement.
This entire claim should be turned over for subrogation to attempt to collect from ABC Classic Cars.
That’s it - Man your battle stations and fire away.
gj