Why was the claims payout for my personal property so low?

I live in Texas and have a flood insurance policy. My personal property was damaged during a flood recently. I had to submit a claim to my insurance, but the payout was a lot lower than I expected. Why is that?

Answer
“Personal property is subject to replacement at actual cash value with a flood policy. In all likelihood, this is the reason your payout is lower than expected.
The actual cash value is the cost of an item minus depreciation. That means if something is a few years old, it isn’t worth the same amount you purchased it for.
Having a flood insurance policy in Texas that protects your personal property is important, especially since the state is prone to floods and other disasters. That said, it’s completely understandable to be frustrated if you’re expecting a larger payout than what you receive.
If you’re still unsure why your payout is lower, reach out to your insurance company. An agent or a claim adjuster can clarify the details of your payout. If you haven’t accepted the payout or settlement yet, you could try to negotiate with them, as well.
Since insurance often increases after submitting a claim, you may want to shop around. Look to Jerry for help. Jerry is a licensed insurance broker that can find you the best home and auto insurance policies in seconds—for free!”
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Emily Maracle
Answered on Sep 10, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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