When a Car Crashes into Your Home: Navigating Insurance Claims and Repair Costs
Recently, I found myself in a challenging situation that many homeowners might face: a vehicle collided with my house, causing substantial damage. Approximately a month ago, a neighbor inadvertently drove into the corner of my home, leading to harm to the siding, weather barrier, and sheathing, as well as my beloved planter. After obtaining two estimates from local contractors, I found that the repair cost would range between $4,200 and $4,600.
However, I was surprised to learn that the insurance company, representing the driver responsible for the accident, would only cover $2,100 based on the “Actual Cash Value” (ACV) of the damage. They advised that they would not pay for the full replacement cost due to the type of auto policy in effect.
This situation brought forth two pressing questions:
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Is this practice legal? It seems perplexing that if someone damages your property with their vehicle, they aren’t held accountable for restoring it to its original state prior to the incident.
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What steps should I take to cover the remaining repair costs? I’m hesitant to file a claim with my own insurance, fearing that doing so could lead to increased premiums, which feels unjust since I wasn’t at fault. Should I approach my neighbor and request that they cover the difference?
I’m grateful for the community’s responses. With their help, I gained invaluable insights into ACV and Replacement Cost Value (RCV) and recognized the complexities of this process. I am currently negotiating with the insurance company and have requested a detailed appraisal of their assessment. Additionally, discussions with my neighbor about potentially covering the difference are underway.
Update: After persistent efforts, I finally connected with the appraiser. He acknowledged a mistake on the part of Liberty Mutual, as they had incorrectly depreciated the repair costs. Following our conversation, he provided an updated quote that aligns closely with the contractor estimates I received, now differing by just $100.
Navigating this situation has been challenging, but keeping an open dialogue with all parties involved has been crucial. I encourage anyone in a similar predicament to stay informed and advocate for their rightful compensation. Your home should be restored, and understanding these details empowers you to fight for what is fair.
