After a house fire and the insurance company?

Question

my mother- in -laws house burnt down this week and she lost everything including her 13 yr old beloved cat, insurance people came for the contents list, how long does that take before they will give her a check for the amount so she can begin replaceing things she lost???

Answer 1

Well, they can't give her a check until they get the fire marshall report - thats usually the biggest holdup.  It can take a week, or up to a month.  It's beyond your control, completely.

She CAN ask for an advance, if the fire isn't of suspicious nature.  

Sorry for the loss of her cat.  There isn't any coverage for the cat.  Or her pictures, etc.  

Now, go dig through your photos of holidays you held in her house, so you can help her make up an inventory of stuff she lost.  That inventory can take a long, long time to compile.  She'll need help.

Answer 2

A REPLACEMENT COST policy is settled in 2 separate payments...

When the company gets the list of items, they calculate the "actual cash value" and issue a first check based on that.  It is the customer's responsibility to actually go out and start replacing the items with new items of similar style.  The receipts from the new purchases are then submitted to the company for a 2nd check to be issued.  This 2nd check is the difference between what the actual cash value and the replacement cost new actually is.    

As an example, if she listed owning 15 shirts, the company would calculate, lets say, $1 per shirt for actual cash value.  A check would be issued for the $15, and then she has to go out and buy them new again at, lets say, $10 a piece.  She gives the receipts to the company and they see she spent $150 to buy them new.  The company will issue a 2nd check of the $135 difference to her. (Note that if she only chooses to replace 8 shirts instead of 15, then she only gets replacement cost for the 8.)

  

As long as the fire was not suspicious in any way, the company will usually have her settled on the actual cash value part within 30 to 60 days.  The replacement cost is really up to her, but some policies will set a time limit of how long they have to get the receipts back in.  

Hope this helps, and I'm so very sorry this had to happen to her, and especially loosing her kitty friend.