Residential Property Claims Guide

10 • Personal Property If you have a replacement cost policy for your possessions, you normally need to replace the damaged items before your insurance company will pay you the replacement cost. If you decide not to replace some items, you will be paid their actual cash value. You don’t have to decide what to do immediately. Your insurance company will generally allow you several months from the date of the cash value payment to replace the item. Find out how many months you are allowed. Some insurance companies supply lists of vendors that can help replace your property. What to Do If You Do Not Agree with the Settlement Offer • Know Your Rights Under the Unfair Practices Act and the Fair Claims Settlement Practices Regulations Insurance Code section 790 and several following sections constitute the Unfair Practices Act. More particularly, Section 790.03(h) specifically lists a number of prohibited unfair claims settlement practices. The Unfair Practices Act requires an insurer’s response to a notice of claim to include a copy of Section 790.03 and a written notice that, in addition to Section 790.03, Fair Claims Settlement Practices Regulations govern how insurance claims must be processed in this state. These regulations are found in Chapter 5 of Title 10 of the California Code of Regulations, and commence at Section 2695.1. You may request a copy of the regulations from the insurer, but an insurer is only required to provide you with a portion of the regulations. The full text of the regulations is available at the Department of Insurance Internet website, www.insurance.ca.gov.