Wealthy Way Insurance Claims 101: What You’re Really Paid For
Oct 7, 2025
Rising insurance premiums in disaster-prone areas like Florida, California, and Texas are a hot topic. Initial payouts are often based on Actual Cash Value, which means depreciation is a factor that affects your compensation. The backlog from disasters can delay full payments, leaving homeowners in limbo. Chad shares tactics for policyholders to potentially improve their claims after catastrophes. Plus, the risks of insurers exiting risky markets can leave property owners in a bind. Never accept the first offer; negotiation is key!
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Premiums Rise In Disaster Hotspots
- Hotspot states (FL, CA, TX, NV) face rising premiums due to increasing disasters.
- Premium hikes occur even when a specific property hasn't suffered damage.
Replacement Cost Comes Later, Often Delayed
- Replacement cost is not paid up front and you must submit repairs and invoices to get supplements.
- After catastrophic events the backlog of claims delays these supplemental payments significantly.
Initial Payouts Are Actual Cash Value
- Insurers initially pay Actual Cash Value (ACV): replacement cost minus depreciation.
- Depreciation uses insurers' actuarial tables and can be much higher than owners expect.