Louisiana’s Donelon: Policyholders Should Check For Ida Deadlines
Louisiana Insurance Commissioner Jim Donelon is encouraging policyholders who filed claims for Hurricane Ida damage to check with their agent or insurance company for any required deadlines necessary to settle their claims.
The Louisiana Department of Insurance said earlier this month policyholders seeking to file proof of loss for damage due to Ida have until Feb. 25, when a 180-day deadline for most residential and commercial property insurance policies expire.
“Speaking with your agent can provide clarity about how a claim will be paid and if you need to do anything else to ensure the process is as smooth as possible,” Donelon said.
Replacement cost value coverage reimburses policyholders for the cost of repairing a structure or replacing an item without deducting for depreciation. For example, if a 10-year-old roof was damaged, the insurer will ultimately pay the full cost to replace the roof rather than deducting for a decade of wear and tear.
Many insurers initially pay policyholders the actual cash value, or depreciated value, of an item or building component, then reimburse policyholders for the full amount when the item is repaired or replaced. Policies often require policyholders to replace the item and submit documentation to receive reimbursement.
Policyholders who have a replacement cost policy on their home have one year from the date of the loss or the date a claim payment was received, whichever is later, to file the additional documentation needed to receive full reimbursement. Some policies may have a longer deadline period, so policyholders should contact their agent for more information. Policyholders can submit receipts for replaced items that were previously reimbursed at actual cash value to collect the full replacement cost if the policy allows for it.
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