Alliance Adjustment Group, Inc.

Alliance Adjustment Group ("AAG") advised and assisted the [redacted]s with two property damage insurance claims that occurred during the fourth quarter of 2011. The [redacted]s submitted a third claim for damages that resulted from Hurricane Sandy in 2012. AAG was not retained to assist with the handling of...

that claim.The insurance company issued payments on both 2011 claims for damages sustained to the roof, exterior siding, and basement. It is standard industry practice for insurance companies to release only the actual cash value of the damages before the repairs are complete i.e. payment is reduced for depreciation. The insureds may be entitled to recover some or all of the withheld depreciation once the work is complete. The amount of depreciation that can ultimately be recovered is based on what repairs are eventually made and how much was spent to complete those repairs.AAG notified the [redacted]s about the potential for recovering depreciation in a letter dated September 20, 2012 (see attached). We explained that it was important to avoid any delay in the repairs because of time constraints contained in the insurance policy.In July 2013 AAG received documents and material invoices from the [redacted]s which were in turn submitted to the insurance company for consideration. The documents were re-sent in September 2013 because the insurance carrier did not respond. The insurance company requested a re-inspection of the property to confirm Completion of the repairs. This inspection occurred on September 26, 2013. Since the repairs were not yet complete, the insurance company did not release a supplemental payment at that time.In the months following the above-referenced inspection with the insurance Company, AAG sent several messages to the [redacted]s via email (see attached). We repeatedly inquired about the status of repairs and requested any associated documentation. Unfortunately, we never received notice that the repairs were complete and the files were retired in mid-2014.In the first quarter of 2016, the [redacted]s provided AAG with numerous documents related to various repairs. These documents included repairs made after the Hurricane Sandy claim in 2012 for which AAG was not involved. A representative of AAG reviewed the documentation then explained to the [redacted]s that what they provided was not sufficient to make claim for the recoverable depreciation.called and spoke with Mr. [redacted] on April 29, 2016. He performed most of the work in the basement on his own and is interested in recovering the applicable depreciation. I explained that it is difficult to recover additional funds when homeowners perform their own work because the insurance company requires invoices and/or material receipts that correspond with the replacement cost of the loss. I further explained that only half of the total amount of depreciation is related to the basement with the balance applied to exterior repairs that are not yet complete.I advised Mr. [redacted] that I will personally contact a representative of the insurance company and attempt to negotiate release of the depreciation that was applied to the basement. Mr. [redacted] expressed appreciation for my willingness to assist and he understood the limitations of our position.Since AAG is actively working to resolve the [redacted]'s concerns, we respectfully request that this complaint be marked closed with a satisfactory resolution for the client.Please feel free to call me with any questions # ###-###-####.Sincerely,ALLIANCE ADJUSTMENT GROUP, INC.Michael P[redacted] MBA, CPCU Chief Operating Officer

Alliance Adjustment Group ("AAG") advised and assisted the [redacted]s with two property damage insurance claims that occurred during the fourth quarter of 2011. The [redacted]s submitted a third claim for damages that resulted from Hurricane Sandy in 2012. AAG was not retained to assist with the handling...

of that claim.The insurance company issued payments on both 2011 claims for damages sustained to the roof, exterior siding, and basement. It is standard industry practice for insurance companies to release only the actual cash value of the damages before the repairs are complete i.e. payment is reduced for depreciation. The insureds may be entitled to recover some or all of the withheld depreciation once the work is complete. The amount of depreciation that can ultimately be recovered is based on what repairs are eventually made and how much was spent to complete those repairs.
AAG notified the [redacted]s about the potential for recovering depreciation in a letter dated September 20, 2012 (see attached). We explained that it was important to avoid any delay in the repairs because of time constraints contained in the insurance policy.
In July 2013 AAG received documents and material invoices from the [redacted]s which were in turn submitted to the insurance company for consideration. The documents were re-sent in September 2013 because the insurance carrier did not respond. The insurance company requested a re-inspection of the property to confirm Completion of the repairs. This inspection occurred on September 26, 2013. Since the repairs were not yet complete, the insurance company did not release a supplemental payment at that time.In the months following the above-referenced inspection with the insurance Company, AAG sent several messages to the [redacted]s via email (see attached). We repeatedly inquired about the status of repairs and requested any associated documentation. Unfortunately, we never received notice that the repairs were complete and the files were retired in mid-2014.
In the first quarter of 2016, the [redacted]s provided AAG with numerous documents related to various repairs. These documents included repairs made after the Hurricane Sandy claim in 2012 for which AAG was not involved. A representative of AAG reviewed the documentation then explained to the [redacted]s that what they provided was not sufficient to make claim for the recoverable depreciation.
called and spoke with Mr. [redacted] on April 29, 2016. He performed most of the work in the basement on his own and is interested in recovering the applicable depreciation. I explained that it is difficult to recover additional funds when homeowners perform their own work because the insurance company requires invoices and/or material receipts that correspond with the replacement cost of the loss. I further explained that only half of the total amount of depreciation is related to the basement with the balance applied to exterior repairs that are not yet complete.
I advised Mr. [redacted] that I will personally contact a representative of the insurance company and attempt to negotiate release of the depreciation that was applied to the basement. Mr. [redacted] expressed appreciation for my willingness to assist and he understood the limitations of our position.
Since AAG is actively working to resolve the [redacted]'s concerns, we respectfully request that this complaint be marked closed with a satisfactory resolution for the client.
Please feel free to call me with any questions # ###-###-####.
Sincerely,
ALLIANCE ADJUSTMENT GROUP, INC.
Michael P[redacted] MBA, CPCU
Chief Operating Officer