The devastation of a house fire can be overwhelming, leaving homeowners stressed and unsure of how to start the process of rebuilding. When it comes to insurance coverage for fire damage, the term "total loss" often comes up.
In this post, we will explore what is meant by total loss in regard to fire claims, and why it is important to understand this concept when filing a claim. We'll also discuss other potential options that may be available if a total loss occurs.
What Determines a Total Loss
When a house is damaged or destroyed by fire, flood, or another disaster, the damage can be devastating and the financial losses can be catastrophic. Homeowners are often left wondering what their insurance will cover and what they will have to pay out of pocket. To help protect homeowners and ensure they receive the financial protection they need, insurance companies provide "total loss coverage."
Total loss is a term used by insurance companies to describe a situation where the damage caused by an insured loss is so severe that it makes the home uninhabitable. If a total loss occurs, the insurance company will pay out-of-pocket costs to repair or replace your home.
Will My Payout Actually Cover the Cost of My Home?
In most situations, you will pay the difference between what your insurance carrier will reimburse and what it will cost to restore or rebuild your home if your insurer determines that your home is a total loss.
However, this difference will hinge on which type of coverage you have. If your policy uses ACV or "Depreciated Value" when evaluating your claim, you likely won't receive enough money to replace your home at its equal market value.
Here's Why > ACV vs Replacement Value: What's the Difference?
Next Steps After a Total Loss - Call Liberty Adjusters!
Say your home caught fire and is determined unlivable, thus a total loss... What's next?
Contact a public adjuster! Our team here at Liberty Insurance Adjusters will do everything in our power to make sure you receive the maximum value for your claim.
By working with an insurance adjuster, can get up to 574% more for your claim! Of course, we can still help you if you've already filed, but calling a public adjuster before filing your claim will see more success. Don't hesitate, give us a call today!