Actual Cash Value & Replacement Cost
Order of Payments
- The initial payment will be for the actual cash value of the item(s).
- The remaining (deferred amount) may be claimed upon replacement of the item(s) within the specified time frame allowed in your policy.
Structure & Content Valuation
Amount of Time To Begin Loss Adjustment & Pay Claim – Potential Penalties & Attorney Fees
In the case of catastrophic loss, the insurer shall initiate loss adjustment of a property damage claim within thirty (30) days after notification of loss by the claimant unless the Commissioner of Insurance promulgates a rule to extend the time period for initiating a loss adjustment for damages arising from a presidentially declared emergency or disaster or a gubernatorially declared emergency or disaster for up to an additional thirty (30) days. Thereafter, one additional extension of the period of time for initiating a loss adjustment may be allowed by the Commissioner of Insurance if approved by the Senate Committee on Insurance and the House Committee on Insurance.
Hurricane Ida- Sixty Day Period To Begin Loss Adjustment
According to Department of Insurance Office of the Commissioner Emergency Rule 47 Promulgated in accordance with Proclamation JBE 2021-165, R.S. 22:2, R.S. 22:11, and R.S. 22:1961 et seq, R.S. 49:950 et seq
- A. In accordance with R.S. 22:1892(A)(3), Hurricane
Ida and its aftermath qualifies as a catastrophic loss event
that requires insurers to initiate loss adjustment of a property
damage claim within 30 days after notification of loss by the
- B. In furtherance of R.S. 22:1892(A)(3), the severity of
the devastation caused by Hurricane Ida and its aftermath
qualifies for an additional thirty (30) days for insurers to
initiate loss adjustment of a property claim after notification
of loss by the insured claimant.
- C. Therefore, insurers shall have a total of 60 days to
initiate loss adjustment of a property damage claim after
notification of loss by the insured claimant.
- D. This declaration is based on the representation that the
additional time period is necessary due to the large volume
of claims resulting directly from Hurricane Ida and its
aftermath, and with the admonition that insurers will
promptly identify, evaluate, and resolve these claims.
Insurers must continue to provide timely service to their
insured claimants by promptly acknowledging receipt of
claims and making appropriate assignments for the
adjustment of claims.