Frequently Asked Questions
Glacier Homes understands that during the restoration of your home you may have some questions. Here are some frequently asked questions to get you started. If you have additional questions please fill out an information request form and we will be happy to help you find some answers.
1. What is replacement cost?
Replacement cost is the cost to repair or replace the damaged item with an item that is similar in kind and quality without deduction for depreciation.
2. What is actual cash value?
Actual cash value is based on the cost to repair or replace the damaged item with an item of like kind and quality, less depreciation.
3. How is depreciation calculated?
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.
For example, the normal life expectancy of a composition roof is 20 years. Under normal conditions, the roof depreciates at a rate of 5 percent per year. If the roof is eight years old with typical wear and tear, the depreciated amount is 40 percent. (5 percent x 8 years = 40 percent.) The actual cash value of the roof is 60 percent of the replacement cost. (100 percent - 40 percent = 60 percent.)
4. How am I reimbursed?
Your homeowner's policy may have replacement cost coverage on the structure. If it does, full reimbursement for replacement costs may take place in the form of two or more payments. You receive an initial payment from the adjuster with the estimate. This initial payment is for the full cost or for the actual cash value of the repair. If the payment is for actual cash value, an "amount deferred" is listed on the claim settlement report. This amount can be claimed upon completion of the work.
5. How do I apply for the amount deferred?
To receive the deferred repair amount (or recoverable depreciation); submit itemized receipts for the completed repairs or replacement. Your Insurance Company pays the deferred amount or the difference between the initial payment and the completed repair bill, whichever is less. Submit a final itemized repair invoice or receipts to the address provided by your adjuster. Please write your claim number on all pages of the itemized invoice or receipts.
6. Are there deadlines I must meet to receive the deferred payment?
Your adjuster can assist you with information regarding repair or replacement deadlines and requirements in your local area. Normally, you have one year from the date of loss to complete the required repairs and submit your itemized repair receipts to us for our review and further payment consideration.
7. Why is my mortgage holder listed on the payment?
Your insurance policy requires that any lien holder (if applicable) be listed on the payment as a payee. If requested, please help the contractor get the payment endorsed by the lien holder. Failure to name the lien holder on the payment could result in legal action against the Insurance Company.