Actual loss sustained in home owners insurance?
What does actual loss sustained clause mean in my home owners insurance?
Is this a good thing or should I change it?
That sounds a lot like "actual cash value". In other words, the insurance company will only pay you what the house or household item was worth at the time the loss was sustained.
Living out in the sticks, I had my riding lawnmower stolen a couple years ago. Since it was two years old, they took what I originally paid for it and depreciated it down. They gave me a check for that amount LESS THE DEDUCTIBLE.
The best scenario is to have homeowners insurance with replacement cost on the dwelling and the contents. Get your agent to play with the deductible a little if you want to keep the premium down.
I was a property/casualty insurance agent for 8 years.
Hope this helps
Ask your representative, and make him answer you until you understand what it covers.
On my policy the 'actual loss sustained' is the limit for the loss of use provision.
So... lets say your house burns down. Your insurance pays to maintain your life. They will pay rent while you are rebuilding your house, help with food costs because you do not have a kitchen, etc. They idea being that you should not have any extra out of pocket expense. If before the loss your food for the month cost $400 but now you have to eat out every night and it cost $780 they will pay the difference.
Some policies have limits : 100,000 or a time frame 1 year. Actual loss means they will pay anything. It is a good thing.
Hope that helps.
Usually you see the "actual loss sustained" language in commercial policies in relation to losses to time element coverages like business income and extra expense.
What coverage is this referring to in your homeowners policy? The dwelling, contents or loss of use...or all of the above?
Anyway, ALS is good for the insured...be happy!
This is a very very very bad thing. I recommend using a trusted ins company like instantlend
Someone asked this a couple days ago.
It means, there's no dollar limit to the amount they pay out. It's usually a time limit - like 12 months. It's a good thing, but even if you don't like it, you can't change it.
Homeowners policies are "package" policies. Once you have the dwelling value, you're stuck with preset percentages for the other structures, loss of use (when it's not ALS), and contents. Sometimes you can RAISE the amount, but you can't lower it.
ps, Amy K saying it's a bad thing - she has NO idea what it means.