Replacement cost is the cost to repair or replace your damaged property or vehicle with an item of like, kind, and quality, without deduction for age, use, or obsolescence.
Actual cash value is based on the cost to repair or replace the damaged item with an item of like, kind, and quality, minus any adjustments for things like age, use, or deterioration.
The most common method of calculating depreciation is based on the life expectancy of the item, with adjustments made for the item's age and condition.
The typical life expectancy of a composition roof is 25 years which means that under normal conditions, the roof depreciates at a rate of 4% a year. A loss involving a 10 year old roof with typical wear and tear may be handled as such:
Your policy may have Replacement Cost coverage on your home and/or personal property. If it does, full reimbursement may take place in the form of two or more payments. You will receive an initial payment corresponding with the claims representative's estimate. This initial payment may be for the full cost, or for the Actual Cash Value, of the repair. If the payment is for actual cash value, an "amount for recoverable depreciation" will be listed on the estimate. This amount can be claimed upon completion of the repair.
To receive the recoverable depreciation, you must submit itemized receipts/invoices pertaining to the completed repairs. Farmers Union Insurance will pay the amount withheld or the difference between the initial payment and completed repair bill, whichever is less. Submit the invoice or receipt to your local claims representative. Make sure to include your claim number.
Yes. You must notify your claims representative, in writing, of your intent to make a claim under the replacement cost provision within 180 days of the date of loss. The actual repair or replacement must then be completed by a specified date.
If a mortgage holder is listed on your policy, we are required to include the name on payments relating to that property.
Contact your agent or our 24/7 Call Center at 1-866-638-5677 to report your claim. Your agent or one of our claims representatives can assist you with finding a local water restoration company. The water restoration company can assist you in the damage mitigation process.
We always recommend:
Be ready to provide:
Depending on your policy, the length of time you've had Farmers Union Insurance and the laws and regulations in your state, your premium may not increase. We always recommend that you discuss any concerns you have with your agent
Filing a claim against your policy could help protect you in case there are covered damages or injuries discovered later or if the other driver's insurance company fails to reimburse you for the damages. If you become involved in litigation because of a covered accident, your Farmers Union Insurance policy could help you by providing legal counsel
The deductible is the portion of a covered loss you pay before the insurance company becomes responsible for payment under the policy. For example, if your covered claim is $2,000 and your applicable deductible is $500, you pay $500 and Farmers Union Insurance then pays the remaining amount of $1,500
It is always a good idea to file a police report when you experience damage or theft
We employ a special investigative unit to help identify and control claims that may involve fraud. If you suspect fraud, please contact your claims representative or call 1-800-347-1961, Ext. 2634
Recycled parts are those that have been previously used and are salvaged from vehicles that are no longer in service. Recycled parts have long been used in the automobile repair industry. They are often more readily available than brand-new dealer distributed parts and less expensive. Using recycled parts is also an environmentally friendly, energy conserving alternative to brand new dealer distributed parts
Remanufactured parts are original equipment manufactured parts that have sustained minor cosmetic damage and have been repaired by a competent re-manufacturer. These parts look and perform equivalent to brand new OEM parts. Most re-manufacturers will warranty these parts for as long as you own your vehicle.
Non-OEM parts, which are sometime referred to as after-market parts are those that are manufactured by someone other than the original equipment manufacturer (OEM). At Farmers Union Insurance we specify only CAPA or MQVP certified sheet metal parts on vehicles that are two model years or older. CAPA (Certified Automotive Parts Association) and MQVP (Manufacturers' Qualification and Validation Program) are organizations that test and certify the quality of non-OEM parts. The CAPA and MQVP certification is your assurance that the part is the functional equivalent to an OEM part and meets generally accepted industry standards for fit, finish and corrosion protection. These parts are backed by a warranty from the manufacturer that is often for as long as you own your vehicle