Rental total loss due to Fire

[Victoria Hunkin]

Rental property caught fire possibly arson. It was a vacant property. It is a Total Loss. What are some questions I should be asking my insurance adjuster?

[John Mocker]

Victoria,

First, you want to review your policy.  Check for:

1. type of coverage:  Replacement Cost (RC) vs Actual Cash Value (ACV).  Is it Special form or Named perils.

2. Total limit: What is the coverage for Building and what is the deductible

3. Is there Coinsurance:  if you have 80% Coinsurance clause on the policy, you need to have the property insured to 80% or more of the true RC or ACV (depending on what you have) or face a reduction on the loss.

4. Was the policy written as a Vacant policy or was it occupied and became vacant later.  If so, what is the vacancy clause in the policy and what happens if the vacancy is longer.

These are some of the staring points that will help you understand what is due to you because of the loss.  Your agent should be able to help with the above info and with what the claim process will be like.