The Standard Fire Insurance Policy Requires Actual Cash Value for Damaged Property At The Time of Loss.

In California, the Insurance Code establishes the terms of standard fire insurance policies. Standard fire insurance policy is based on the policy identified in California Insurance Code. The standard insuring clause calls for coverage “to the extent of the actual cash value of the property at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after the loss …”

In case of a partial loss to the structure, or loss to its contents, depreciation is taken into consideration in determining the amount it would cost the policyholder to repair, rebuild, or replace the damaged item.

If your insurance company has wrongfully denied your claim, or paid less than you are entitled to call today for your free consultation with a partner. No recovery. No fee.

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